Exam Questions Hartley Retailing And Wholesaling Ch.16 - Answer Key + Test Bank | Marketing 13th Edition by Kerin and Hartley by Roger A. Kerin, Steven W. Hartley. DOCX document preview.

Exam Questions Hartley Retailing And Wholesaling Ch.16

Chapter 16

Retailing and Wholesaling

 


Multiple Choice Questions
 

1.

The revolutionary new __________ resembles a pair of eyeglasses with a small display screen visible to the wearer. Image and voice recognition capabilities allow retail clerks to check manuals for technical information, verify stock inventories, place orders, or even check out customers from anywhere in the store. 
 

A. 

Apple iWatch

B. 

Facebook Vision

C. 

EyeTap Goggles

D. 

Google Glass

E. 

Foursquare's FourEyes

 

2.

The overlay of stored images or graphics with the real-world environment creates what type of reality for wearers of these new Google Glass digital eyeglasses? 
 

A. 

virtual

B. 

cognitive

C. 

augmented

D. 

apparent

E. 

ultimate

 

3.

All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use are referred to as 
 

A. 

manufacturing.

B. 

retailing.

C. 

wholesaling.

D. 

facilitating.

E. 

logistics.

 

4.

Retailing includes all activities involved in the 
 

A. 

selling, renting, and providing of products and services to ultimate consumers for personal, family, or household use.

B. 

selling of tangible products to ultimate consumers for personal, family, or household use.

C. 

selling of tangible products to ultimate consumers for personal, household, or industrial use.

D. 

selling, renting, leasing, or reselling of products and services to ultimate consumers or small industrial users.

E. 

selling, renting, and providing of products and services without retaining the title to these offerings.

 

5.

Retailing is an important marketing activity. Not only do producers and consumers meet through retailing actions, but retailing also creates 
 

A. 

the nation's largest source of tax revenues.

B. 

the largest source of charitable contributions.

C. 

limited utilities for consumers.

D. 

customer value.

E. 

a sense of community.

 

6.

The __________ provided by retailers create value for consumers. 
 

A. 

utilities

B. 

wholesaling functions

C. 

outsourcing functions

D. 

profits

E. 

synergies

 

7.

The four utilities offered to consumers through retailing are 
 

A. 

convenience, performance, possession, and form.

B. 

time, place, possession, and form.

C. 

product, price, place, and promotion.

D. 

people, productivity, process, and physical environment.

E. 

convenience, consistency, competition, and choice.

 

8.

Wells Fargo is one of the best-run banks in the United States. It reaches retail customers through 9,000 stores, a worldwide network of 12,000 ATMs, and its online banking service. Which utility does Wells Fargo best provide? 
 

A. 

time

B. 

possession

C. 

place

D. 

form

E. 

performance

 

9.

Enterprise car rental agency differentiates itself from other similar agencies by providing a delivery service. This delivery service is particularly valuable to someone who has been left stranded without transportation. By making it easy to rent temporary transportation, Enterprise is emphasizing which utility? 
 

A. 

form

B. 

product

C. 

service

D. 

possession

E. 

convenience

 

10.

CarMax dealers have adopted a "no-hassle, no-haggle" sales policy that eliminates the need for negotiating. Instead, all customers are offered the same price. Test drives, financing, trade-ins, and leasing are all offered to encourage customers to purchase a car. Which utility does CarMax best provide? 
 

A. 

product

B. 

form

C. 

convenience

D. 

service

E. 

possession

 

11.

Albertsons Supermarket accepts debit and credit cards as well as cash and checks for purchases. Its acceptance of various forms of payment provides its customers with __________ utility. 
 

A. 

time

B. 

place

C. 

possession

D. 

form

E. 

public

 

12.

A restaurant that offers food made exactly to each customer's preference is providing __________ utility. 
 

A. 

time

B. 

place

C. 

possession

D. 

form

E. 

process

 

13.

The ability to shop over the Internet 24 hours a day, seven days a week, provides consumers with __________ utility. 
 

A. 

form

B. 

time

C. 

convenience

D. 

possession

E. 

performance

 

14.

At the Christmas Tree Shop, customers can shop for Christmas gifts and decor at any time of the year. What type of utility primarily does this store provide for its customers? 
 

A. 

place and conformance

B. 

possession and form

C. 

form

D. 

performance

E. 

time

 

15.

The Sports Authority is a sporting goods superstore that provides year-round inventory of equipment for just about any sport. Even during the off-season, equipment for seasonal sports is available at the Sports Authority. Which utility does the Sports Authority best provide? 
 

A. 

time

B. 

convenience

C. 

possession

D. 

form

E. 

performance

 

16.

Four of the 40 largest businesses in the United States are retailers—Walmart, Costco, Home Depot, and 
 

A. 

Sears.

B. 

Target.

C. 

Best Buy.

D. 

JC Penney.

E. 

Bloomingdale's.

 

17.

Which of the following is one of the largest retailers in the United States? 
 

A. 

Hallmark

B. 

Procter & Gamble

C. 

Merck

D. 

Home Depot

E. 

Johnson and Johnson

 

18.

Walmart's $485 billion in sales in 2014 surpassed the gross domestic product of all but __________ countries for that same year. 
 

A. 

five

B. 

12

C. 

18

D. 

38

E. 

55

 

19.

The greatest dollar amount of retail sales in the United States is generated by 
 

A. 

food and beverage stores.

B. 

sporting goods, books, and music stores.

C. 

electronic stores.

D. 

automotive dealers.

E. 

furniture and home furnishing stores.

 

20.

The smallest dollar amount of retail sales in the United States is generated by 
 

A. 

automotive dealers.

B. 

food and beverage stores.

C. 

sporting goods, book, and music stores.

D. 

electronic stores.

E. 

furniture and home furnishing stores.

 

21.

Outside the United States, large retailers include __________ in Japan, Carrefour in France, Metro Group in Germany, and Tesco in Britain. 
 

A. 

Aeon

B. 

Toshei

C. 

Seebi

D. 

Goshen

E. 

Toshi

 

22.

Aeon, Carrefour, Tesco, and Metro Group are 
 

A. 

sizable wholesalers that handle products for the world's largest retailers.

B. 

new Internet start-ups that have the potential to impact the U.S. economy.

C. 

large retailers outside of the United States.

D. 

large distributors of business products.

E. 

historic companies that developed consumer selling systems, though none of them exist today.

 

23.

The three key methods of classifying retail operations are 
 

A. 

method of operation, revenues generated, and merchandise line.

B. 

form of ownership, method of operation, and merchandise line.

C. 

form of ownership, level of service, and merchandise line.

D. 

level of service, merchandise line, and revenues generated.

E. 

merchandise line, form of ownership, and revenues generated.

 

24.

Which of the following is a commonly used method of retail outlet classification? 
 

A. 

service versus product

B. 

form of ownership

C. 

proportion of national versus private label brands carried

D. 

revenues generated

E. 

profitability

 

25.

The __________ distinguishes retail outlets based on whether independent retailers, corporate chains, or contractual systems own the outlet. 
 

A. 

wheel of retailing

B. 

service level

C. 

merchandise line

D. 

product assortment

E. 

form of ownership

 

26.

One method of classification describes whether a retailer is self-, limited-, or full- 
 

A. 

involvement.

B. 

assortment.

C. 

management.

D. 

service.

E. 

ownership.

 

27.

Three __________ are provided by self-, limited-, and full-service retailers. 
 

A. 

levels of distribution

B. 

levels of involvement

C. 

levels of service

D. 

service commitments

E. 

merchandise lines

 

28.

The degree of service provided to the customer from self-, limited-, and full-service retailers is referred to as 
 

A. 

involvement.

B. 

level of service.

C. 

service commitment.

D. 

customer obligation.

E. 

degree of commitment.

 

29.

Level of service is used to describe the degree of service provided to the customer. Three levels of service are provided by self-, __________, and full-service retailers. 
 

A. 

limited-

B. 

total-

C. 

involvement-

D. 

obligation-

E. 

fixed-

 

30.

A method of classification that describes how many different types of products a store carries and in what assortment is referred to as a 
 

A. 

product mix.

B. 

service level.

C. 

product variety.

D. 

store composition.

E. 

merchandise line.

 

31.

According to the textbook, __________ provides third-party certification and offers guidance for retailers implementing new environmentally sound practices. 
 

A. 

the Environmental Protection Agency

B. 

the U.S. Chamber of Commerce—Environmental Division

C. 

Green Cross International

D. 

the U.S. Green Retail Association

E. 

Leadership in Energy and Environmental Design (LEED)

 

32.

When Home Depot switched its in-store light fixture displays to compact fluorescent light and LED bulbs, painted the roofs of its stores white, and installed solar panels, it reduced its energy use by __________ percent. 
 

A. 

5

B. 

10

C. 

15

D. 

20

E. 

25

 

33.

There are three general forms of retail ownership: contractual system, corporate chain, and 
 

A. 

dual ownership.

B. 

industry consortium.

C. 

retailing cooperative.

D. 

independent retailer.

E. 

multinational cartel.

 

34.

There are three general forms of retail ownership: contractual system, independent retailer, and 
 

A. 

dual ownership.

B. 

industry consortium.

C. 

retailing cooperative.

D. 

multinational cartel.

E. 

corporate chain.

 

35.

There are three general forms of retail ownership: independent retailer, corporate chain, and 
 

A. 

dual ownership.

B. 

industry consortium.

C. 

retailing cooperative.

D. 

contractual system.

E. 

multinational cartel.

 

36.

The most common form of retail ownership is the 
 

A. 

corporate chain model.

B. 

consumer cooperative model.

C. 

contractual system of group shareholdings.

D. 

independent retailer owned by an individual.

E. 

administered systems chain.

 

37.

Independent retailers account for most of the __________ retail establishments in the United States. 
 

A. 

50,000

B. 

90,000

C. 

500,000

D. 

900,000

E. 

1.1 million

 

38.

Most of the 1.1 million retail establishments in the United States are considered 
 

A. 

corporate chains.

B. 

contractual systems.

C. 

independent retailers.

D. 

conglomerates.

E. 

multinationals.

 

39.

Which form of retail outlet would most likely offer customers convenience, quality personal service, and lifestyle compatibility? 
 

A. 

corporate chain

B. 

independent retailer

C. 

administered system

D. 

contractual system

E. 

sole incorporation

 

40.

Your neighborhood dry cleaner or florist is likely to be categorized as an independent retailer. This means it is owned by 
 

A. 

an individual.

B. 

a conglomerate.

C. 

a consortium.

D. 

a chain.

E. 

a cooperative.

 

41.

A form of ownership that involves multiple outlets under common ownership is referred to as 
 

A. 

a corporate chain.

B. 

a consumer cooperative.

C. 

a contractual system.

D. 

an independent retailer.

E. 

an administered system.

 

42.

Bloomingdale's stores are part of __________ corporate chain. 
 

A. 

Dillard's

B. 

Macy's

C. 

Target's

D. 

Walmart's

E. 

Saks Fifth Avenue's

 

43.

Which of the following statements regarding corporate chains is most accurate
 

A. 

Corporate chains cannot bargain with a manufacturer to obtain product volume discounts due to federal anticompetitive legislation—the Clayton Act as amended by the Sherman Act.

B. 

Corporate chains generally own most if not all of their suppliers—a practice known as forward integration—so they can save distribution costs.

C. 

Consumers have fewer choices in merchandise since all buying decisions are made by a decentralized buying committee.

D. 

Corporate chains offer the least benefit to consumers since they are the farthest removed from the ultimate consumer.

E. 

Corporate chains are multiple outlets under common ownership.

 

44.

Consumers benefit in dealing with retail corporate chains because 
 

A. 

corporate chains have more experience than other forms of retailers.

B. 

they can own stock in the same company where they shop since corporate chain stock must be publicly traded.

C. 

the latter can bargain with a manufacturer to obtain product volume discounts on orders, which can be passed on to consumers in terms of lower prices.

D. 

there are multiple outlets, each with its own varied merchandise and different management policies.

E. 

merchandise is arranged and displayed by professional designers making their shopping experience less stressful.

 

45.

Consumers benefit in dealing with retail corporate chains because 
 

A. 

corporate chains have more experience than other forms of retailers.

B. 

they can own stock in the same company where they shop since corporate chain stock must be publicly traded.

C. 

they can establish a credit history more easily than with other forms of retailers.

D. 

there are multiple outlets with similar merchandise and consistent management policies.

E. 

they have less stress in making decisions since merchandise is arranged and displayed by professional designers.

 

46.

The acronym RFID stands for 
 

A. 

retail franchise identification designation.

B. 

required financial identification.

C. 

radar frequency identification.

D. 

radio frequency identification.

E. 

retail federation of independent department stores.

 

47.

Walmart has developed a sophisticated inventory management and cost control system that allows rapid price changes for each product in the store. The firm also uses technologies such as __________ to improve the quality of information available about products. 
 

A. 

radio frequency identification

B. 

encapsulation techniques

C. 

bar code scanners

D. 

nanotechnology

E. 

cookies

 

48.

Independently owned stores that band together to act like a chain are referred to as 
 

A. 

corporate chains.

B. 

cooperative marketing systems.

C. 

contractual systems.

D. 

regional shopping centers.

E. 

self-service systems.

 

49.

The three basic types of contractual systems are 
 

A. 

retailer-sponsored cooperatives, wholesaler-sponsored voluntary chains, and franchises.

B. 

dual ownership agreements, industry consortiums, and nonbinding cooperatives.

C. 

wholesaler-sponsored voluntary chains, nonbinding cooperatives, and franchises.

D. 

dual ownership agreements, industry consortiums, and multinational cartels.

E. 

nonbinding, binding, and in perpetuity.

 

50.

One way neighborhood grocers can take advantage of volume discounts commonly available to corporate chains is to 
 

A. 

purchase a franchise membership.

B. 

become a subsidiary of a larger supermarket chain such as Kroger.

C. 

join a professional merchant association and hire food brokers to negotiate lower prices for produce and dry goods.

D. 

create a grocery networking system to exchange coupon vouchers.

E. 

participate in a retailer-sponsored cooperative with other independent grocers.

 

51.

Neighborhood grocers that work together with several other independent grocers that all agree to buy their goods directly from food manufacturers is 
 

A. 

a retailer-sponsored cooperative.

B. 

a consortium system.

C. 

an administrative system.

D. 

a conglomerate system.

E. 

a contractual horizontal marketing system.

 

52.

Which method of retail outlet classification is most appropriate for describing franchise operations? 
 

A. 

form of ownership

B. 

level of service

C. 

merchandise line

D. 

method of operation

E. 

revenues generated

 

53.

Franchising is a type of 
 

A. 

administered system.

B. 

contractual system.

C. 

vertically integrated chain.

D. 

retail-sponsored cooperative.

E. 

corporate system.

 

54.

In __________, an individual or firm contracts with a parent company to set up a business or retail outlet. 
 

A. 

an administered system

B. 

a vertically integrated chain

C. 

a retail-sponsored cooperative

D. 

a franchise system

E. 

a corporate system

 

55.

What type of contractual system describes a situation in which assistance in selecting the location, setting up the store or facility, advertising, and training personnel is provided by the parent company? 
 

A. 

administered system

B. 

conglomerate system

C. 

franchise system

D. 

vertical integrated system

E. 

retail-sponsored cooperative

 

56.

As a franchisor, 7-Eleven would assist a franchisee in selecting the store location, setting up the store, advertising, and 
 

A. 

developing the marketing program.

B. 

training personnel.

C. 

offering performance bonuses.

D. 

ordering and restocking inventory.

E. 

paying insurance and legal fees.

 

57.

The two general types of franchises are 
 

A. 

product-format franchises and distribution franchises.

B. 

business-format franchises and manufacturing franchises.

C. 

venture franchises and general service franchises.

D. 

manufacturing franchises and venture franchises.

E. 

business-format franchises and product-distribution franchises.

 

58.

There are two general types of franchises: business-format franchises and __________ franchises. 
 

A. 

product-distribution

B. 

general service

C. 

manufacturing

D. 

distribution

E. 

venture

 

59.

A franchise where the franchisor provides step-by-step procedures for most aspects of the business is known as a 
 

A. 

business-format franchise.

B. 

product-distribution franchise.

C. 

business franchise venture.

D. 

manufacturing franchise.

E. 

general service franchise.

 

60.

McDonald's, 7-Eleven, and Subway are examples of 
 

A. 

product-distribution franchises.

B. 

business franchise venture.

C. 

business-format franchises.

D. 

manufacturing franchises.

E. 

general service franchise.

 

61.

As a business-format franchisor, McDonald's provides step-by-step procedures for most aspects of the business and 
 

A. 

provides an accounting system to pay the franchisee bills promptly.

B. 

shops for the best food values.

C. 

maintains the property.

D. 

guidelines for the most likely decisions a franchisee will face.

E. 

disciplines dishonest employees.

 

62.

Subway is a popular 
 

A. 

business-format franchise.

B. 

product-distribution franchise.

C. 

operations franchise venture.

D. 

manufacturing franchise.

E. 

general service franchise.

 

63.

A franchise where the franchiser provides a few general guidelines to the franchisee is known as a 
 

A. 

business-format franchise.

B. 

manufacturing franchise.

C. 

product-distribution franchise.

D. 

general service franchise.

E. 

business franchise venture.

 

64.

Ford and Coca-Cola represent which type of franchise? 
 

A. 

business-format franchise

B. 

manufacturing franchise

C. 

general service franchise

D. 

product-distribution franchise

E. 

business franchise venture

 

65.

Franchising is attractive for the franchisee because 
 

A. 

it gives the franchisee complete control over the delivery and presentation of merchandise.

B. 

the license fees paid to the franchisor are the only fees the franchisee pays.

C. 

it relieves the franchisee from any company or product liabilities.

D. 

it offers the franchisee the opportunity to enter into a well-known, established business where managerial advice is provided.

E. 

the franchisee is completely his or her own boss.

 

66.

Organizations that decide to franchise (franchisors) have __________ expansion costs accompanied by __________ control, compared to owning their own retail outlets. 
 

A. 

greater; greater

B. 

reduced; reduced

C. 

greater; reduced

D. 

reduced; greater

E. 

greater; about the same

 

67.

By selling franchises, an organization __________ the cost of expansion and __________ its control compared to owning its own retail outlets. 
 

A. 

increases; increases

B. 

increases; reduces

C. 

reduces; increases

D. 

increases; retains almost all

E. 

reduces; reduces

 

68.

The three commonly used terms to describe levels of service are 
 

A. 

self-service, limited-service, and full-service.

B. 

retailer-service, sales-service, and customer-service.

C. 

self-service, automated-service, and online-service.

D. 

limited-service, full-service, and automated-service.

E. 

wholesaler-service, retailer-service, and customer-service.

 

69.

The level of service that requires the customers themselves perform many functions during the purchase process is 
 

A. 

full-service.

B. 

limited-service.

C. 

self-service.

D. 

customized-service.

E. 

automated-service.

 

70.

Off-price retailers, warehouse clubs, and grocery stores that require customers to bag their groceries provide what level of retail service? 
 

A. 

full-service

B. 

limited-service

C. 

customized-service

D. 

self-service

E. 

automated-service

 

71.

Costco requires customers to perform many shopping functions during the purchasing process and all nonessential customer services have been eliminated. What level of service does Costco offer? 
 

A. 

limited-service

B. 

full-service

C. 

customized-service

D. 

self-service

E. 

restricted-service

 

72.

A number of U.S.-based retail chains use special checkout lanes and terminals instead of clerks. This is an example of what level of service? 
 

A. 

full-service

B. 

self-service

C. 

limited-service

D. 

customized-service

E. 

functional-service

 

73.

All of the following retailers provide self-service to their customers except 
 

A. 

Zipcar.

B. 

Shop24.

C. 

Target.

D. 

Redbox.

E. 

Costco.

 

74.

General merchandise stores such as Walmart, Kmart, and Target are usually considered __________ retailers. 
 

A. 

exclusive-service

B. 

minimal-service

C. 

self-service

D. 

full-service

E. 

limited-service

 

75.

Outlets where customers are responsible for most shopping activities, although salespeople are available in some departments, would be classified as __________ retail outlets. 
 

A. 

limited-service

B. 

exclusive-service

C. 

minimal-service

D. 

self-service

E. 

full-service

 

76.

Loehmann's is an upscale, specialty retailer that sells name-brand designer fashions. A few salespeople are available for selected departments, but customers are responsible for most of their shopping activities. Loehmann's provides its consumers with 
 

A. 

full service.

B. 

limited service.

C. 

self-service.

D. 

restricted service.

E. 

functional service.

 

77.

Target recently introduced its Target REDcard, where cardholders receive 5 percent back for each purchase. Target also allows customers to return merchandise within 30 days but still does not offer alteration services. Target offers what level of service to its customers? 
 

A. 

full service

B. 

self-service

C. 

automated service

D. 

limited service

E. 

customized service

 

78.

Most specialty stores and department stores, which provide many services to their customers, are considered to be 
 

A. 

exclusive-service retailers.

B. 

limited-service retailers.

C. 

full-service retailers.

D. 

full-domain retailers.

E. 

upscale retailers.

 

79.

Specialty stores and department stores, which provide many services to their customers, are frequently categorized by which level of service? 
 

A. 

full service

B. 

exclusive service

C. 

minimal service

D. 

self-service

E. 

limited service

 

80.

At which level of service would the customer perform the least number of functions? 
 

A. 

automated service

B. 

minimal service

C. 

self-service

D. 

limited service

E. 

full service

 

81.

Godiva Chocolatier invites consumers to stop by one of its stores for an unforgettable experience, including delectable chocolates, decorative gift collections, and unrivaled customer care. What type of retail service is Godiva offering? 
 

A. 

full service

B. 

limited service

C. 

self-service

D. 

restricted service

E. 

functional service

 

82.

Saks Fifth Avenue is an upscale retailer that offers designer brand women's apparel, fragrances, jewelry, and leather accessories. The retailer relies on superior service to sell its products and to retain its customers. Saks Fifth Avenue would be classified as 
 

A. 

an exclusive-service retailer.

B. 

a limited-service retailer.

C. 

a full-service retailer.

D. 

a premium-service retailer.

E. 

a semi-service retailer.

 

83.

Kitchen Window is a one-stop treasure trove for cooks. The locally owned gourmet specialty store carries more than 14,000 items in stock. Its knowledgeable staff offers personalized service and will even gift-wrap your purchases free of charge. It also offers a shop for repairs should your appliances need maintenance. Kitchen Window is __________ retailer. 
 

A. 

an exclusive-service

B. 

an upscale-service

C. 

a self-service

D. 

a limited-service

E. 

a full-service

 

84.

Williams-Sonoma is a specialty store that caters to customers who like to cook at home. It offers free cooking classes, has frequent demonstrations by cookbook authors, and has employees who are knowledgeable about food preparation. The sales staff helps customers make their selections. Williams-Sonoma is __________ retailer. 
 

A. 

an exclusive-service

B. 

a full-service

C. 

an upscale-service

D. 

a self-service

E. 

a limited-service

 

85.

Nordstrom stores typically have 50 percent more salespeople on the floor than other retailers with stores of similar sizes. Its salespeople are renowned for their professional and personalized attention to customers. Nordstrom would be considered 
 

A. 

an exclusive-service retailer.

B. 

a limited-service retailer.

C. 

a full-service retailer.

D. 

an upscale retailer.

E. 

a limited-domain retailer.

 

86.

A Woman's Place is a retail store, created and staffed by women, that offers products and services relating to maternity needs. For expectant mothers, it offers advice and personal shopping services, help with hair and/or make-up problems, and free delivery. A Woman's Place is an example of __________ retailer. 
 

A. 

a franchise

B. 

a self-service

C. 

a limited-service

D. 

a full-service

E. 

an upscale

 

87.

Retail outlets vary by their merchandise lines, the key distinction being the __________ of the items offered to customers. 
 

A. 

scope and span

B. 

breadth and depth

C. 

breadth and inventory

D. 

scope and inventory

E. 

range and span

 

88.

Depth of product line refers to 
 

A. 

the percentage of goods stored as inventory.

B. 

the variety of different product items a store carries.

C. 

variations in price and color on specific items in a store.

D. 

the assortment of each item carried by a store.

E. 

the number of different product classes owned by a corporate chain.

 

89.

A large assortment of each item within a product line in a store is referred to as 
 

A. 

product span.

B. 

breadth of product line.

C. 

length of product line.

D. 

width of product line.

E. 

depth of product line.

 

90.

Your local Hallmark retailer carries thousands of greeting cards. You can find cards for a "twins" birthday, from my cat to yours, and many other unique occasions. This is an example of the __________ that the Hallmark retailer carries. 
 

A. 

depth of product line

B. 

breadth of product line

C. 

height of product line

D. 

length of product line

E. 

width of product line

 

91.

New Balance offers shoes for men, women, and children in many sizes and widths. It offers running, cross training, walking, golf, and other types of shoes. This is an example of the __________ that New Balance offers to its customers through its own stores or other retailers such as Foot Locker or Sports Authority. 
 

A. 

product items

B. 

depth of product line

C. 

breadth of product line

D. 

versatility of product family

E. 

variety of product mix

 

92.

The variety of different items a store carries is referred to as the 
 

A. 

retailing mix.

B. 

depth of product line.

C. 

breadth of product line.

D. 

width of product line.

E. 

length of product line.

 

93.

Your local Target retailer carries a variety of different items. You can find everything ranging from socks and DVDs to baby items and groceries. This is an example of the __________ carried by Target. 
 

A. 

breadth of product line

B. 

depth of product line

C. 

variety of brand extension

D. 

breadth of product class

E. 

product mix

 

94.

Stores that carry a considerable assortment (depth) of a related line of items are referred to as 
 

A. 

limited-line stores.

B. 

general merchandise stores.

C. 

scrambled merchandise stores.

D. 

hypermarkets.

E. 

intertype outlets.

 

95.

Your local Safeway grocery store is most likely classified as which retail variation based on its considerable assortment (depth) of a related line of items within each line it carries? 
 

A. 

single-line

B. 

full-service

C. 

full-line

D. 

limited-service

E. 

limited-line

 

96.

Stores that carry tremendous depth in one primary line of merchandise are referred to as 
 

A. 

hypermarkets.

B. 

intertype outlets.

C. 

scrambled merchandise stores.

D. 

limited-line stores.

E. 

single-line stores.

 

97.

Victoria's Secret, a nationwide chain, carries great depth in women's lingerie—and almost no other products. Victoria's Secret is an example of 
 

A. 

a limited-line store.

B. 

a single-line store.

C. 

an intertype outlet.

D. 

a general merchandise store.

E. 

a scrambled merchandise store.

 

98.

Limited- and single-line stores are often referred to as 
 

A. 

specialty outlets.

B. 

general merchandise stores.

C. 

scrambled merchandise stores.

D. 

intertype outlets.

E. 

hypermarkets.

 

99.

Mike's Camera is a retailer that carries a full line of professional and amateur cameras, develops and/or prints all types of film and digital photos, and even sells darkroom equipment. Mike's Camera is an example of 
 

A. 

a hypermarket.

B. 

a general merchandise store.

C. 

a scrambled merchandise store.

D. 

an intertype outlet.

E. 

a specialty outlet.

 

100.

A retail outlet that focuses on one type of product at very competitive or discount prices and often dominates the market is referred to as a 
 

A. 

general merchandise store.

B. 

value outlet.

C. 

hypermarket.

D. 

category killer.

E. 

department store.

 

101.

Specialty discount stores that dominate the market are referred to as 
 

A. 

hypermarkets.

B. 

category killers.

C. 

value outlets.

D. 

regional dominators.

E. 

focused merchandise stores.

 

102.

Staples is a specialty discount retailer that focuses on one type of product—office supplies. Staples is an example of a 
 

A. 

hypermarket.

B. 

superstore.

C. 

category killer.

D. 

department store.

E. 

focused merchandise stores.

 

103.

Stores that carry a broad product line, with limited depth, are referred to as 
 

A. 

limited-line stores.

B. 

general merchandise stores.

C. 

scrambled merchandise stores.

D. 

hypermarkets.

E. 

intertype outlets.

 

104.

Stores like Dillard's, Macy's, and Neiman Marcus carry a wide range of different types of products but not an extensive number of items within each type. These retailers are known as 
 

A. 

limited-line stores.

B. 

scrambled merchandise stores.

C. 

hypermarkets.

D. 

intertype outlets.

E. 

general merchandise stores.

 

105.

Offering several unrelated product lines in a single store is referred to as 
 

A. 

intertype competition.

B. 

multiple distribution.

C. 

scrambled merchandising.

D. 

a department store.

E. 

a specialty outlet.

 

106.

Scrambled merchandising refers to 
 

A. 

displaying merchandise throughout a store rather than keeping all similar items together in rows on a shelf or point-of-purchase displays.

B. 

offering several unrelated product lines in a single store.

C. 

changing the position in which items are displayed in a store to create customer interest in a variety of product lines.

D. 

offering several related product lines in multiple stores.

E. 

offering several related product lines in a single store.

 

107.

A drugstore that sells pharmaceuticals, beauty aids, camera equipment, nonperishable grocery items, and automobile motor oil is an example of a retailer using 
 

A. 

multiple distribution channels.

B. 

full service.

C. 

scrambled merchandising.

D. 

intertype competition.

E. 

dual channel marketing.

 

108.

Hypermarket refers to 
 

A. 

a category killer that specializes in electronics.

B. 

a form of intertype competition consisting of general merchandise stores.

C. 

a shopping mall anchored by four or more department stores such as Sears or Nordstrom.

D. 

a form of limited-service outlets focusing on general merchandise like that offered in department stores.

E. 

a form of scrambled merchandising, which consists of large stores (with more than 200,000 square feet), that offer everything in a single outlet, eliminating the need for consumers to shop at more than one location.

 

109.

In Europe, stores called __________ are based on the concept of one-stop shopping for consumers. Such retail stores, which use scrambled merchandising, typically encompass over 200,000 square feet of floor space and offer quality, variety, and low price for food and groceries and general merchandise. 
 

A. 

megamarkets

B. 

hypermarkets

C. 

one-stop markets

D. 

euromarkets

E. 

supercenters

 

110.

Which of the following retailers is one of the largest hypermarkets in the world? 
 

A. 

Target

B. 

Kroger

C. 

Carrefour

D. 

Kmart

E. 

Walmart

 

111.

Located predominately in Europe, large stores (more than 200,000 square feet) that offer thousands of different food, grocery, and general merchandise products are referred to as 
 

A. 

discount wholesalers.

B. 

discount retailers.

C. 

supermarkets.

D. 

hypermarkets.

E. 

retail cooperatives.

 

112.

Which type of store gives shoppers the greatest variety of merchandise? 
 

A. 

a hypermarket

B. 

a specialty clothing store

C. 

a limited-line gift store

D. 

a clothing outlet

E. 

a discount store

 

113.

Meijer operates a chain of hypermarkets headquartered in Michigan, which means it 
 

A. 

engages in no intertype competition.

B. 

is a disintermediator.

C. 

uses scrambled merchandising.

D. 

can also be referred to as a category killer.

E. 

uses dual distribution.

 

114.

A supercenter is 
 

A. 

an auto service center that sells and leases cars as well as repairs them.

B. 

a type of specialty outlet.

C. 

a store that combines a typical merchandise store with a full-size grocery store.

D. 

a mall with more than 100 stores and several important anchor stores.

E. 

a store one step larger than a hypermarket.

 

115.

Competition for the same or similar type of product or service between very dissimilar types of retail outlets as the result of a scrambled merchandising policy is referred to as 
 

A. 

mixed-type merchandising.

B. 

intertype competition.

C. 

scrambled merchandising.

D. 

multi-service merchandising.

E. 

dual-type distribution.

 

116.

Intertype competition refers to competition between 
 

A. 

very similar types of retail outlets that results from a single-product/single-line merchandising policy.

B. 

retailers when the types of items they sell are virtually indistinguishable from one another.

C. 

national and generic brands that are sold side by side in a retail outlet.

D. 

retailers located in separate quadrants of the retail positioning matrix.

E. 

very dissimilar types of retail outlets that practice scrambled merchandising.

 

117.

__________ describes very dissimilar types of retail outlets that can compete with each other as a result of scrambled merchandising. 
 

A. 

The wheel of retailing

B. 

The retail positioning framework

C. 

Intertype competition

D. 

The retail competitive cycle

E. 

The multichannel retail competitive map

 

118.

Fresh-cut flowers that were only available from florists can now be purchased at neighborhood supermarkets. This is an example of 
 

A. 

dysfunctional competition.

B. 

mixed-line merchandising.

C. 

multi-product marketing.

D. 

intertype competition.

E. 

dual distribution.

 

119.

Many supermarkets have in-store restaurants where a customer can buy prepared meals to take home or eat there. Supermarkets and restaurants that provide these same kinds of meals are engaged in __________ competition. 
 

A. 

intertype

B. 

institutional

C. 

intermodal

D. 

functional

E. 

selective

 

120.

All of the following are forms of nonstore retailing except 
 

A. 

direct selling.

B. 

television home shopping.

C. 

factory outlets.

D. 

online retailing.

E. 

telemarketing.

 

121.

Retailing that occurs outside a retail outlet, such as through direct marketing, direct selling, and automatic vending, is referred to as 
 

A. 

limited-line retailing.

B. 

nonstore retailing.

C. 

scrambled merchandising.

D. 

a hypermarket.

E. 

intertype competition.

 

122.

Which of the following is an example of nonstore retailing? 
 

A. 

hypermarkets

B. 

supercenters

C. 

shopping centers

D. 

vending machines

E. 

general merchandise stores

 

123.

Vending machines are an example of 
 

A. 

hypermarkets.

B. 

direct mail.

C. 

scrambled merchandising.

D. 

intertype competition.

E. 

nonstore retailing.

 

124.

Prices in vending machines tend to be higher because 
 

A. 

machines are placed in low-demand traffic areas.

B. 

maintenance, operating, and leasing costs are high.

C. 

only small unit volume items are sold.

D. 

customary pricing requires certain coin and currency amounts regardless of the normal retailer markup.

E. 

few people buy from vending machines.

 

125.

About 34 percent of the products sold from vending machines are 
 

A. 

candy and snacks.

B. 

personal items.

C. 

movies and videos.

D. 

cold beverages.

E. 

food.

 

126.

Which form of retailing is Best Buy now using in airports to distribute its mobile phone and computer accessories, digital cameras, flash drives, and other consumer electronics? 
 

A. 

vending machines

B. 

salespeople with mobile carts

C. 

mall-scale traditional retail stores

D. 

salespeople wearing Best Buy uniforms with products in backpacks

E. 

freestanding kiosks staffed with knowledgeable sales personnel

 

127.

The 4.8 million vending machines currently operating in the United States generate more than __________ in annual sales. 
 

A. 

$359 million

B. 

$985 million

C. 

$3.8 billion

D. 

$19.5 billion

E. 

$46 billion

 

128.

Vending machines are popular with consumers; recent consumer satisfaction research indicates that __________ percent of consumers believe purchasing from a vending machine is equal to or superior to a store purchase. 
 

A. 

67

B. 

88

C. 

49

D. 

63

E. 

82

 

129.

Vending machines are no longer limited by the need for cash. In Japan, South Korea, and the Philippines, consumers use mobile phones that transmit payments to vending machines wirelessly. This is an example of how vending machines can provide which type of utility? 
 

A. 

time

B. 

place

C. 

possession

D. 

product

E. 

form

 

130.

Direct-mail and catalog retailing are examples of 
 

A. 

nonstore retailing.

B. 

intertype retailing.

C. 

online retailing.

D. 

print-media retailing.

E. 

dual retailing.

 

131.

An IKEA mail order catalog is an example of __________ retailing. 
 

A. 

intrusive

B. 

intertype

C. 

scrambled

D. 

nonstore

E. 

hypermarket

 

132.

All of the following are reasons direct-mail and catalog retailing are attractive except 
 

A. 

they can create customer value by providing a fast and convenient means of making a purchase.

B. 

they can serve as a tool to encourage consumers to visit a website, a social media page, or even a store.

C. 

their paper costs and postal rates have declined, making them less expensive to send.

D. 

they can eliminate the cost of a store and clerks.

E. 

they can improve marketing efficiency through segmentation and targeting.

 

133.

The average U.S. household now receives __________ direct-mail items or catalogs each week. 
 

A. 

18

B. 

24

C. 

34

D. 

39

E. 

29

 

134.

The Direct Marketing Association estimates that direct-mail and catalog retailing creates __________ in sales. 
 

A. 

$420 billion

B. 

$14 billion

C. 

$190 billion

D. 

$22 billion

E. 

$642 billion

 

135.

Higher paper costs, increased postage rates, the growing interest in do-not-mail legislation, and concern for "green" mailings have resulted in 
 

A. 

a switch to online catalogs and direct-to-customer e-mail advertisements.

B. 

the use of thinner, lightweight paper products.

C. 

a focus on specialty catalogs for market niches.

D. 

the banning of "junk" mail by a growing number of environmentally concerned communities.

E. 

a resurgence in nonautomated telemarketing.

 

136.

Higher paper costs, increased postage rates, the growing interest in do-not-mail legislation, and concern for "green" mailings have resulted in 
 

A. 

a switch to online catalogs and direct-to-customer e-mail advertisements.

B. 

a focus on proven rather than prospective customers.

C. 

the use of thinner, lightweight paper products.

D. 

the banning of "junk" mail by a growing number of environmentally concerned communities.

E. 

a resurgence in nonautomated telemarketing.

 

137.

The use of specialty catalogs from firms such as IKEA, Crate and Barrel, and L.L. Bean have been affected by all of the following factors except 
 

A. 

the possibility of the U.S. Postal Service reducing delivery to five days a week.

B. 

higher paper costs, an increase in postage rates, and the possibility of the U.S. Postal Service reducing delivery to five days a week.

C. 

the growing interest in do-not-mail legislation.

D. 

the concern for "green" mailings and catalogs.

E. 

the growing influence of television home catalog shopping where consumers view the products they're interested in and then order those they want over the telephone.

 

138.

In direct-mail and catalog retailing, the "P" in the acronym PURL stands for 
 

A. 

personalized.

B. 

presorted.

C. 

preloaded.

D. 

proactive.

E. 

portable.

 

139.

Jim Smith is an avid fly fisherman who lives in Deer Key, Florida. For his hobby, Jim needs large rubber rafts, hip waders, special fishing rods, reels, line, and an assortment of fishing tackle and lures. There are no sporting goods stores in Deer Key, so Jim orders his fishing supplies from the L.L. Bean catalog. His supplies are generally delivered to his home within 72 hours. Jim is using a __________ to satisfy his fishing supply needs. 
 

A. 

home delivery retailer

B. 

quick-response retailer

C. 

direct-mail marketer

D. 

flexible response marketer

E. 

regional marketer

 

140.

The marketing managers at Omaha Steaks used airlines' databases to mail a special offer to frequent flyers. Eight weeks after shipping the steaks to the frequent flyers who responded to the offer, the company's salespeople followed up by telephoning customers to ask for new orders. This is an example of which types of nonstore retailing? 
 

A. 

direct selling and telemarketing

B. 

direct mail and telemarketing

C. 

telemarketing and online retailing

D. 

online retailing and direct mail

E. 

direct mail and direct selling

 

141.

Currently, the three largest television home shopping programs in the United States are 
 

A. 

QVC, HSN, and ShopNBC.

B. 

Shop at Home, QVC, and HSN.

C. 

Direct Shopper, Shop at Home, and ShopNBC.

D. 

ValueVision, Shop at Home, and QVC.

E. 

Shop America, Direct shopper, and J.S. Global.

 

142.

QVC is a television home shopping network. It generates sales of more than $8 billion from its 60 million customers by 
 

A. 

restricting purchases only through its Mall of America studio.

B. 

broadcasting live 12 hours a day 365 days a year.

C. 

offering more than 1,000 products each week.

D. 

offering overstocked items from retailers at a fraction of the original cost.

E. 

running live podcasts and live streaming over the Internet.

 

143.

Which of the following statements regarding QVC is most accurate
 

A. 

QVC broadcasts 12 hours a day 365 days a year.

B. 

QVC reaches more than 198 million homes in the United States, United Kingdom, Germany, Italy, and Japan.

C. 

QVC never offers the same product two days in a row.

D. 

QVC sells all its items by dropping the price to $1.00, regardless of the product value, if it is not sold in one day.

E. 

QVC entices customers to "stay tuned" by offering free products to random callers.

 

144.

In the past, television home shopping programs have attracted mostly 
 

A. 

50- to 60-year-old men.

B. 

25- to 45-year-old women.

C. 

40- to 60-year-old men.

D. 

40- to 60-year-old women.

E. 

35- to 50-year-old women.

 

145.

Some experts suggest that television shopping programs are becoming a modern version of __________ by combining elements of reality TV programs, talk shows, and infomercials. 
 

A. 

augmented reality

B. 

door-to-door retailing

C. 

telemarketing

D. 

direct-response wholesaling

E. 

indirect selling

 

146.

Which type of utility is created by online shopping? 
 

A. 

time

B. 

price

C. 

product

D. 

process

E. 

promotion

 

147.

The term bricks and clicks refers to __________ and __________, respectively. 
 

A. 

catalogs; websites

B. 

search engines; websites

C. 

traditional retailers; online retailers

D. 

buildings; shoppers

E. 

computer savvy buyers; computer novice buyers

 

148.

Walmart recently introduced "Site-to-Store" service that 
 

A. 

offers shoppers a virtual reality shopping experience from their home computers.

B. 

allows customers to order online and receive free same-day pickup at a local store.

C. 

provides free shipping to customers if they order $50 or more of selected items.

D. 

allows customers to shop in-store using virtual personal shoppers.

E. 

allows customers to attend online auctions for Walmart overstock or seasonal items that are being discontinued to make room for new inventory.

 

149.

Online retail purchases by consumers can be the result of several very different approaches, including (1) using a shopping "bot" to search for a product at locations with the best price, (2) participating in an online auction, (3) going directly to online malls, and (4) __________. 
 

A. 

paying dues to become a member of an online discount service

B. 

becoming a secret shopper

C. 

participating in a buying cooperative

D. 

using direct selling

E. 

becoming a member of a research group that evaluates new products

 

150.

Online retail purchases by consumers can be the result of several very different approaches, including (1) paying dues to become a member of an online discount service, (2) participating in an online auction, (3) going directly to online malls, and (4) __________. 
 

A. 

becoming a secret shopper

B. 

participating in a buying cooperative

C. 

using direct selling

D. 

using a shopping "bot" to search for a product at locations with the best price

E. 

becoming a member of a research group that evaluates new products

 

151.

Online retail purchases by consumers can be the result of several very different approaches, including (1) paying dues to become a member of an online discount service, (2) using a shopping "bot" to search for a product at locations with the best price, (3) going directly to online malls, and (4) __________. 
 

A. 

becoming a member of a research group that evaluates new products

B. 

becoming a secret shopper

C. 

participating in an online auction

D. 

participating in a buying cooperative

E. 

using direct selling

 

152.

Some retailers now allow consumers to respond to their text messages announcing a sale for a specified time period. Consumers must then visit the site to purchase the sale items. Which of the following retailing websites offer these limited time "flash sales"? 
 

A. 

TextBuyIt

B. 

Best Buy

C. 

PeaPod

D. 

eBay

E. 

Gilt

 

153.

One of the biggest problems online retailers face is that nearly __________ percent of online shoppers make it to "checkout" and then leave the website to compare shipping costs and prices on other sites. 
 

A. 

46

B. 

26

C. 

66

D. 

56

E. 

36

 

154.

One of the biggest problems online retailers face is that nearly two-thirds of online shoppers make it to "checkout" and then leave the website to compare shipping costs and prices on other sites. Of the shoppers who leave, __________ percent do not return. 
 

A. 

30

B. 

70

C. 

50

D. 

60

E. 

40

 

155.

Experts suggest that online retailers should think of their websites as __________ if they are to attract and retain customers. 
 

A. 

cash cows

B. 

dynamic billboards

C. 

virtual reality stores

D. 

traditional retail stores

E. 

online entertainment

 

156.

Using the telephone to interact with and sell directly to consumers is referred to as 
 

A. 

digital marketing.

B. 

telemarketing.

C. 

solicitation marketing.

D. 

telecommerce.

E. 

direct selling.

 

157.

According to the Direct Marketing Association, annual telemarketing sales exceed 
 

A. 

$103 billion.

B. 

$280 billion.

C. 

$137 billion.

D. 

$332 billion.

E. 

$500 billion.

 

158.

In the telemarketing industry, issues such as __________, ethical guidelines, and industry standards have become a topic of discussion among consumers, Congress, the Federal Trade Commission (FTC), and businesses. 
 

A. 

competitive antics

B. 

coercion tactics

C. 

freedom of speech

D. 

language issues

E. 

consumer privacy

 

159.

In the telemarketing industry, issues such as consumer privacy, __________, and industry standards have become a topic of discussion among consumers, Congress, the Federal Trade Commission (FTC), and businesses. 
 

A. 

product quality

B. 

price differences

C. 

ethical guidelines

D. 

on-time delivery

E. 

competitive antics

 

160.

Which of the following statements regarding telemarketing is most accurate
 

A. 

Shopping bots are computers that place automated or "robo" (i.e., robotic) telemarketing calls.

B. 

Direct mail is typically viewed as a more efficient means of targeting consumers than telemarketing.

C. 

Telemarketing has risen in popularity as a result of the National Please-Do-Call registry legislation.

D. 

Consumer privacy, industry standards, and ethical guidelines have become important issues.

E. 

Some firms are considering shifting their direct-mail and door-to-door budgets to telemarketing techniques.

 

161.

As a result of legislation, consumers who do not want to receive telephone calls related to company sales efforts can 
 

A. 

purchase telephones that block unwanted calls.

B. 

place their telephone numbers on the National Do Not Call Registry.

C. 

request phone numbers that begin with the area code 555 that automatically block telemarketing solicitors.

D. 

request phone numbers that begin with the area code 888 that automatically block telemarketing solicitors.

E. 

use an unlisted telephone number.

 

162.

The sales of products and services to consumers through personal interactions and demonstrations in their homes or offices is referred to as 
 

A. 

direct selling.

B. 

person-to-person sales.

C. 

face-to-face selling.

D. 

direct-response selling.

E. 

customized selling.

 

163.

Sales of goods and services to consumers through personal interactions and demonstrations in their homes or offices is referred to as direct selling, or 
 

A. 

person-to-person sales.

B. 

interactive selling.

C. 

door-to-door retailing.

D. 

individual promotion.

E. 

customized selling.

 

164.

Direct selling, sometimes called __________, involves direct sales of goods and services to consumers through personal interactions and demonstrations in their home or office. 
 

A. 

interface marketing

B. 

flex marketing

C. 

interactive selling

D. 

responsive selling

E. 

door-to-door retailing

 

165.

Companies such as Avon, Fuller Brush, Mary Kay, and World Book are examples of firms that use 
 

A. 

interface marketing.

B. 

flex marketing.

C. 

direct selling.

D. 

interactive selling.

E. 

responsive selling.

 

166.

Direct selling is likely to continue to have strong growth in markets 
 

A. 

in which people prefer not to have a social shopping experience.

B. 

where convenience is not especially important.

C. 

in which consumers are knowledgeable shoppers.

D. 

where there is a lack of effective distribution channels.

E. 

that have an excellent infrastructure.

 

167.

Growth in the direct-selling industry is the result of two trends: direct-selling retailers are expanding into markets outside the United States, and 
 

A. 

increased gas prices and traffic congestion are causing people to want the store to deliver the products to them.

B. 

the pendulum is beginning to swing back to more mothers (and fathers) staying home during the day with children, making direct selling more convenient.

C. 

the cost of purchasing or leasing real estate to build an actual "brick" retail store is becoming prohibitive.

D. 

graduating business students are finding it more difficult to find a traditional sales position and like the idea of being their own bosses.

E. 

some consumers prefer one-on-one customer service and a social shopping experience rather than online shopping or big discount stores.

 

168.

Growth in the direct-selling industry is the result of two trends—a growing number of companies are using direct selling to reach consumers who prefer one-on-one customer service and a social shopping experience rather than online shopping or big discount stores, and 
 

A. 

many direct-selling retailers are expanding into markets outside of the United States.

B. 

increased gas prices and traffic congestion are causing people to want stores to deliver products to them.

C. 

the pendulum is beginning to swing back to more mothers (and fathers) staying home during the day with children, making direct selling more convenient.

D. 

the purchase or lease of real estate to build an actual "brick" retail store is becoming prohibitive.

E. 

graduating business students are finding it more difficult to find a traditional sales position and like the idea of being their own bosses.

 

169.

Which of the following statements regarding direct selling is most accurate
 

A. 

Unlike other forms of nonstore retailing, direct selling takes place in the business market.

B. 

Direct selling is found exclusively in the United States.

C. 

Direct selling succeeds because it provides customers with convenience and personalized service.

D. 

Direct sales have been declining rapidly in the United States since the 1980s.

E. 

By definition, direct selling can only take place in a home.

 

170.

A customer was unable to go to the store on her own to buy gifts for the holidays. She contacted a Pampered Chef representative who came to her home, showed her not only catalogs but actual products, answered all her questions, and had all the customer's gifts sorted and delivered. This is an example of 
 

A. 

interface marketing.

B. 

flex marketing.

C. 

direct selling.

D. 

interactive selling.

E. 

responsive selling.

 

171.

The analytical tool that positions retail outlets in terms of the breadth of their product line and value added, such as location, product reliability, or prestige, is the 
 

A. 

growth share matrix.

B. 

MAC framework.

C. 

market-product grid.

D. 

retail positioning matrix.

E. 

wheel of retailing.

 

172.

The retail positioning matrix is an analytical tool that 
 

A. 

positions retail outlets in terms of the breadth of product line and value added.

B. 

identifies the best location for building or leasing a retail store.

C. 

identifies the specific customer base served by all stores within a given radius.

D. 

identifies the most likely target market for a retail outlet based upon its size.

E. 

identifies the elements of the retailing mix.

 

173.

The vertical dimension of the retail positioning matrix is 
 

A. 

depth of product line.

B. 

relative market share.

C. 

value added.

D. 

breadth of product line.

E. 

stage in the retail life cycle.

 

174.

The horizontal dimension of the retail positioning matrix is 
 

A. 

depth of product line.

B. 

value added.

C. 

relative market share.

D. 

breadth of product line.

E. 

stage in the retail life cycle.

 

175.

The value added dimension of the retail positioning matrix includes elements such as product reliability, prestige, and 
 

A. 

level of service.

B. 

market share.

C. 

location.

D. 

price.

E. 

number of employees.

 

176.

The value added dimension of the retail positioning matrix includes elements such as location, prestige, and 
 

A. 

level of service.

B. 

market share.

C. 

price.

D. 

number of employees.

E. 

product reliability.

 

177.

The value added dimension of the retail positioning matrix includes elements such as location, product reliability, and 
 

A. 

prestige.

B. 

price.

C. 

market share.

D. 

number of employees.

E. 

level of service.

 

178.

The activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise are referred to as the 
 

A. 

wheel of retailing.

B. 

distribution mix.

C. 

retail life cycle.

D. 

retailing mix.

E. 

retail store positioning.

 

179.

The retailing mix refers to the activities related to the management of and the merchandise in the store, which includes 
 

A. 

retail pricing, store location, retail communication, and merchandise.

B. 

product, price, promotion, and place.

C. 

the utilities of time, form, possession, and price.

D. 

the colors, sizes, shapes, and point-of-purchase display locations of the store's products.

E. 

selection of store location, selection of merchandise, hiring and training of employees, and promotion of both the store and products.

 

180.

Retailing mix refers to the activities related to managing the store and the merchandise in the store, which includes 
 

A. 

product, price, promotion, and place.

B. 

the four utilities of time, form, possession, and place.

C. 

the colors, sizes, shapes, and perceived value of the store's products.

D. 

retail pricing, store location, retail communication, and merchandise.

E. 

selection of store location, selection of merchandise, hiring and training of employees, and promotion of both the store and products.

 

181.

When developing retailing strategies, marketers use what is called the retailing mix, which includes 
 

A. 

products, services, promotions, and retail communication.

B. 

promotions, publicity, and press releases.

C. 

retail pricing, store location, retail communication, and merchandise.

D. 

physical environment, people, process, and productivity.

E. 

direct mail, online stores, traditional stores, and outlet stores.

 

182.

The retailing mix includes all of the following except 
 

A. 

merchandise.

B. 

target market.

C. 

retail pricing.

D. 

store location.

E. 

retail communication.

 

183.

When developing marketing strategies, marketing managers use the elements of the marketing mix, which includes product, price, place, and promotion. In a similar fashion, when developing retailing strategies, marketers use what is called the retailing mix, which includes 
 

A. 

retail pricing, store location, retail communication, and merchandise.

B. 

products, services, and ideas.

C. 

physical distribution, promotions, and communications.

D. 

physical distribution, products, and personal selling.

E. 

products, price, shipping/handling, and personal selling.

 

184.

When setting prices for merchandise, retailers must decide on the markup, the markdown, and the __________ for markdowns. 
 

A. 

relevance

B. 

necessity

C. 

percentage

D. 

timing

E. 

consequence

 

185.

Markup refers to 
 

A. 

the difference between the final selling price and how the customer values the product.

B. 

selling brand name merchandise at lower than regular prices.

C. 

the amount added to the cost the retailer paid for a product to reach the final selling price.

D. 

the difference between the retail cost and initial selling price.

E. 

the reduction in retail price, usually expressed as a percentage equal to the amount reduced, divided by the original price, and then multiplied by 100.

 

186.

The amount added to the cost the retailer paid for a product to reach the final selling price is referred to as 
 

A. 

a markup.

B. 

a markdown.

C. 

an original markup.

D. 

a maintained markup.

E. 

a cost-plus markup.

 

187.

The __________ is a financial term that measures the dollars added to the cost the retailer paid for a product to arrive at the initial selling price. 
 

A. 

maintained markup

B. 

original markup

C. 

return on investment

D. 

markup

E. 

markdown

 

188.

Jane Westerlund owns a small retail picture frame store in a local strip mall. She just bought 10 picture frames from a promising woodworker for $36 each. Based on market conditions, she will sell these for $100 each. What is her markup in dollar terms? 
 

A. 

$136

B. 

$64

C. 

$72

D. 

$360

E. 

$10

 

189.

Jane Westerlund owns a small retail picture frame store in a local strip mall. She just bought 10 picture frames from a promising woodworker for $36 each. Based on market conditions, she will sell these for $100 each. What is the percentage markup based on the selling price? 
 

A. 

156 percent

B. 

36 percent

C. 

64 percent

D. 

100 percent

E. 

0 percent

 

190.

The difference between the retailer's cost and the initial selling price is referred to as 
 

A. 

markup.

B. 

maintained markup.

C. 

markdown.

D. 

differential markup.

E. 

original markup.

 

191.

A retailer bought a collectible Precious Moments figurine for $26. She sets the initial selling price at $60. The final selling price was $52. What was the original markup? 
 

A. 

$86

B. 

$13

C. 

$78

D. 

$34

E. 

$112

 

192.

A maintained markup is 
 

A. 

the difference between the final selling price and the retailer's cost.

B. 

the initial selling price minus the amount paid by the retailer.

C. 

the amount the manufacturer adds to achieve the desired suggested retail price.

D. 

the net margin.

E. 

the highest price listed for the product.

 

193.

The difference between the final selling price and the retailer's cost is referred to as the 
 

A. 

original markup.

B. 

maintained markup.

C. 

markdown.

D. 

differential markup.

E. 

discounted price.

 

194.

Another term for gross margin is 
 

A. 

original markup.

B. 

markdown.

C. 

return on sales.

D. 

discounted price.

E. 

maintained markup.

 

195.

Another term for maintained markup is 
 

A. 

original markup.

B. 

maintained markup.

C. 

markdown.

D. 

gross margin.

E. 

net margin.

 

196.

A retailer bought a collectible Precious Moments figurine for $26. She sets the initial selling price at $60. The final selling price was $52. What was the maintained markup? 
 

A. 

$112

B. 

$52

C. 

$26

D. 

$34

E. 

$86

 

197.

Jane Westerlund owns a small retail picture frame store in a local strip mall. She just bought 10 picture frames from a promising woodworker for $36 each. Based on market conditions, she will sell these for $100 each. Recently, however, sales have been a bit slow. Jane decides to reduce the price for the frames to $80. What is her maintained markup in dollar terms? 
 

A. 

$100

B. 

$20

C. 

$44

D. 

$64

E. 

$0

 

198.

Discounting a product when the product does not sell at the original price is referred to as 
 

A. 

an inverse markup.

B. 

a markdown.

C. 

price sensitivity.

D. 

concession pricing.

E. 

a rebate.

 

199.

Markdown refers to 
 

A. 

the difference between the final selling price and the retailer's cost.

B. 

the amount the manufacturer adds to achieve the desired suggested retail price.

C. 

discounting a product when it does not sell at the original price and an adjustment is necessary.

D. 

the lowest price to which a retailer can reduce a sales ticket and still make a profit.

E. 

the net margin.

 

200.

Many retailers take a markdown as soon as sales fall to free valuable selling space and cash. This illustrates one tactic for handling the __________ of markdowns. 
 

A. 

timing

B. 

demand

C. 

availability

D. 

bargain hunting

E. 

customer value

 

201.

When retailers set prices on new models or styles of products, the price of existing models often is __________ to quickly sell them. 
 

A. 

marked up

B. 

off-priced

C. 

value-added

D. 

marked down

E. 

maintained

 

202.

Often new models or styles force the price of existing models to be 
 

A. 

marked up.

B. 

off-priced.

C. 

value-subtracted.

D. 

maintained.

E. 

marked down.

 

203.

To increase the demand for complementary products, the price of a product often is 
 

A. 

marked up.

B. 

marked down.

C. 

off-priced.

D. 

value-subtracted.

E. 

maintained.

 

204.

Markdowns can be used to 
 

A. 

increase competition with other retailers in the immediate vicinity.

B. 

placate dissatisfied customers.

C. 

enhance customer perceptions of product quality.

D. 

increase demand for complementary products.

E. 

create a sense of urgency among repeat buyers.

 

205.

Timing is an important element of markdowns. Those retailers who take a markdown as soon as sales fall off most likely are doing so to 
 

A. 

placate dissatisfied customers.

B. 

enhance customer perceptions of product quality.

C. 

free up valuable selling space and cash.

D. 

create an image as a cutting-edge retailer.

E. 

react to the entry of a new competitor.

 

206.

The largest inventory of wedding dresses in the Southeast can be found at Low's Bridal and Formal in Brinkley, Arkansas. From December 26 to January 16, a prospective bride shopping at Low's can find gowns once priced at $6,000 for $2,999 and $800 gowns for $399. The reduced prices of these gowns are reflected in which retail pricing strategy? 
 

A. 

markdowns

B. 

original markups

C. 

future markups

D. 

inventory shrinkages

E. 

net markups

 

207.

When Paulette first saw the dress in the store window, she knew two things. She had to own the dress, and she could not afford it at its current price. Disappointed, she left. Two weeks later, she passed by the store again and saw that the price of the dress had been reduced to one that she could afford. Specifically, the store had reduced the price by 30 percent to "move" it. Paulette was able to purchase the dress because of 
 

A. 

a negative markup.

B. 

a markup elimination.

C. 

a markdown.

D. 

a liquidity reduction.

E. 

an increase in net margin.

 

208.

According to the textbook, recent research indicates that the timing of __________ might affect future sales because frequent promotions increase consumers' ability to remember regular prices. 
 

A. 

seasonal markdowns

B. 

original markups

C. 

future markups

D. 

maintained markups

E. 

markdowns

 

209.

Emphasizing consistently low prices and eliminating most markdowns is referred to as 
 

A. 

low-margin pricing.

B. 

everyday low pricing.

C. 

everyday fair pricing.

D. 

value-based pricing.

E. 

maintained pricing.

 

210.

As part of their regular retail pricing strategy, some retailers will emphasize consistently low prices and eliminate most markdowns. This practice is referred to as 
 

A. 

everyday low pricing.

B. 

low-margin pricing.

C. 

everyday fair pricing.

D. 

value-based pricing.

E. 

maintained pricing.

 

211.

Walmart and Home Depot emphasize consistently low prices and eliminate most markdowns with a retail pricing strategy called 
 

A. 

low-margin pricing.

B. 

value-based pricing.

C. 

everyday low pricing.

D. 

everyday fair pricing.

E. 

markdown pricing.

 

212.

Because consumers often use price as an indicator of product quality, what decision factor becomes important in this situation? 
 

A. 

perceived quality

B. 

product benefits

C. 

convenience

D. 

brand name of the product

E. 

maintained price

 

213.

Because consumers often use price as an indicator of product quality, what decision factor becomes important in this situation? 
 

A. 

store image

B. 

value

C. 

convenience

D. 

product benefits

E. 

maintained price

 

214.

Many retailers advocate __________ strategy, a pricing strategy that may not offer the lowest prices but does try to create value for customers through its service and the total buying experience. 
 

A. 

a customer loyalty

B. 

an emphasize-value

C. 

an everyday low pricing

D. 

a low-margin

E. 

an everyday fair pricing

 

215.

Retailers that advocate an everyday fair pricing strategy may not offer the lowest prices, but they try to create value for customers. What decision factor becomes important in this situation? 
 

A. 

customer service

B. 

product benefits

C. 

convenience

D. 

perceived quality

E. 

maintained price

 

216.

Retailers that advocate an everyday fair pricing strategy may not offer the lowest prices but try to create value for customers. What decision factor becomes important in this situation? 
 

A. 

brand name of the product

B. 

product benefits

C. 

convenience

D. 

perceived quality

E. 

the total buying experience

 

217.

Consumers often use the prices of __________ items, such as a can of Coke, to form an overall impression of the store's prices. 
 

A. 

benchmark

B. 

stoplight

C. 

point-of-purchase

D. 

value-based

E. 

loss-leader

 

218.

Consumers often use the prices of __________ items, such as a can of Coke, to form an overall impression of the store's prices. 
 

A. 

stoplight

B. 

point-of-purchase

C. 

value-based

D. 

signpost

E. 

loss-leader

 

219.

Which of the following statements regarding retail pricing is most accurate
 

A. 

Consumers rarely base their perceptions of a store's prices on a price of a benchmark item in the store.

B. 

Consumers are influenced more by a store's ambience than its prices.

C. 

Stores that offer rebates and take an excessive amount of time to process them may create negative consumer perceptions.

D. 

New technology has almost made shoplifting a thing of the past.

E. 

The only difference between everyday low pricing and everyday fair pricing is whether the store uses markups.

 

220.

Shrinkage refers to 
 

A. 

the declining number of small privately owned retail stores due to economic hard times.

B. 

breakage, theft, and fraud by customers and employees.

C. 

the percentage of inventory that is damaged or unsalable because of product failure.

D. 

the loss of profits in clothing items that are returned because of inferior materials.

E. 

polycarbonate packaging that encases products with a tamper-resistant plastic seal.

 

221.

The National Retail Federation estimates that about __________ percent of retail sales is lost to shrinkage. 
 

A. 

1.4

B. 

2.0

C. 

2.4

D. 

0.3

E. 

5.0

 

222.

The National Retail Federation estimates that about __________ percent of retail shrinkage is due to employee theft. 
 

A. 

64

B. 

14

C. 

34

D. 

44

E. 

24

 

223.

Off-price retailing refers to the 
 

A. 

differences between the final selling price and the retailer's cost.

B. 

sale of brand name merchandise at lower than regular prices.

C. 

sale of merchandise at maintained markups.

D. 

amount added by the manufacturer to achieve the desired suggested retail price.

E. 

reduction in retail price usually expressed as the gross margin.

 

224.

The selling of brand name merchandise at lower than regular prices is referred to as 
 

A. 

discount pricing.

B. 

everyday low price.

C. 

markdown pricing.

D. 

off-price retailing.

E. 

loss-price leader.

 

225.

The major difference between an off-price retailer and a discount store is that off-price retailers purchase merchandise from manufacturers __________ and discount stores buy from wholesalers __________. 
 

A. 

that are trying to offload returned or slightly irregular inventory; selling new but inexpensive merchandise

B. 

at below wholesale prices; and charge a high initial price with the full intent of taking markdowns later

C. 

at below wholesale prices; at full price but take less of a markup

D. 

at various price points; at the lowest price points possible

E. 

that are part of a retailing cooperative; that are part of a wholesaling cooperative

 

226.

Merchants such as Burlington Coat Factory sell brand-name merchandise at lower than regular prices. This means that it is using 
 

A. 

an off-price retailing strategy.

B. 

a markdown pricing strategy.

C. 

an everyday fair pricing strategy.

D. 

an everyday low pricing strategy.

E. 

a maintained markdown pricing strategy.

 

227.

The T.J. Maxx HomeGoods retailer uses __________ pricing practice. 
 

A. 

a markdown

B. 

a maintained markup

C. 

a gross margin

D. 

a manufactured suggested retail

E. 

an off-price retail

 

228.

Savings to the consumer at off-price retailers are reported as high as __________ percent off the prices of a traditional department store. 
 

A. 

60

B. 

30

C. 

70

D. 

80

E. 

40

 

229.

Three common forms of off-price retailers are 
 

A. 

warehouse clubs, factory outlet stores, and hypermarkets.

B. 

warehouse clubs, factory outlets, and single-price or extreme-value retailer.

C. 

factory outlets, single-price retailers, online auction services.

D. 

factory outlets, supercenters, hypermarkets.

E. 

extreme value retailers, buying clubs, online auction services.

 

230.

An off-price retailer that requires customers to purchase an annual membership card for the privilege of shopping at the store is referred to as 
 

A. 

an outlet store.

B. 

a single-price retailer.

C. 

a hypermarket.

D. 

a warehouse club.

E. 

a supercenter.

 

231.

A(n) __________ carries 4,000 to 8,000 items and usually stocks just one brand of appliance or food product. 
 

A. 

warehouse club

B. 

single-price retailer

C. 

extreme value retailer

D. 

hypermarket

E. 

supercenter

 

232.

Sam's Club and Costco are examples of 
 

A. 

supercenters.

B. 

hypermarkets.

C. 

warehouse clubs.

D. 

single-price retailers.

E. 

outlet stores.

 

233.

All of the following are characteristics of warehouse clubs except 
 

A. 

customers are attracted by the ultra-low prices and surprise deals on selected merchandise.

B. 

the stores are used to clear excess merchandise.

C. 

customers must pay an annual membership fee.

D. 

the stores carry 4,000 to 8,000 items.

E. 

the stores are rather stark outlets with no elaborate displays.

 

234.

A variation of off-price retailing includes 
 

A. 

discount wholesalers.

B. 

outlet stores.

C. 

discount retailers.

D. 

supercenters.

E. 

hypermarkets.

 

235.

Nordstrom Rack and the Gap Factory Store allow retailers to sell excess merchandise and still maintain an image of offering merchandise at full price in their primary stores. These are referred to as 
 

A. 

extreme value retailers.

B. 

warehouse clubs.

C. 

discount houses.

D. 

outlet stores.

E. 

community shopping centers.

 

236.

Which of the following statements about outlet stores is false
 

A. 

Outlets allow retailers to sell excess merchandise and still maintain an image of offering merchandise at full price in their primary store.

B. 

The recessionary economic climate has increased demand for this type of off-price retailing.

C. 

Increasingly, retailers are offering merchandise made expressly for the outlet division.

D. 

Manufacturers use outlet stores to clear excess merchandise.

E. 

Outlet stores attract customers who want a "corner store" environment.

 

237.

Another name for an extreme-value retailer is 
 

A. 

a specialty outlet.

B. 

a single-price retailer.

C. 

a hypermarket.

D. 

an outlet store.

E. 

a warehouse club.

 

238.

Off-price stores that attract customers who want value and appeal to customers who like a "corner store" environment rather than a large supercenter experience are referred to as 
 

A. 

extreme-value retailers.

B. 

hypermarkets.

C. 

warehouse clubs.

D. 

outlet stores.

E. 

everyday value retailers.

 

239.

Family Dollar, Dollar General, and the Dollar Tree are examples of which type of retailer? 
 

A. 

warehouse club

B. 

hypermarket

C. 

outlet store

D. 

everyday value retailer

E. 

extreme-value retailer

 

240.

Most stores today are near several others in one of five settings that include all of the following except 
 

A. 

the regional shopping center.

B. 

the strip mall.

C. 

the uptown shopping center.

D. 

the community shopping center.

E. 

the power center.

 

241.

Most stores today are near several others in one of five settings: the central business district, the community shopping center, the strip mall, the power center, or the 
 

A. 

exurb value center.

B. 

urban megacenter.

C. 

suburban downtown.

D. 

regional shopping center.

E. 

rural micromall.

 

242.

Most stores today are near several others in one of five settings: the central business district, the community shopping center, the regional shopping center, the power center, or the 
 

A. 

suburban downtown.

B. 

strip mall.

C. 

exurb value center.

D. 

rural micromall.

E. 

urban megacenter.

 

243.

Most stores today are near several others in one of five settings: the central business district, the regional center, the community shopping center, the strip mall, or the 
 

A. 

rural micromall.

B. 

urban megacenter.

C. 

power center.

D. 

exurb value center.

E. 

suburban downtown.

 

244.

Central business district refers to 
 

A. 

a suburban mall that contains up to 100 stores and draws customer from 5 to 10 miles away.

B. 

the oldest retailing setting, located in a community's downtown area.

C. 

a retail location that typically has one primary store and about 20 to 40 smaller outlets, and serves a population base of about 100,000.

D. 

a cluster of stores that serves people who are within a 5- to 10-minute drive and serves a population base of under 30,000.

E. 

a collection of large stores over 100,000 square feet that offers a mix of about 40 percent food products and 60 percent general merchandise items.

 

245.

The oldest retail setting, located in the community's downtown area, is referred to as 
 

A. 

the central business district.

B. 

main street.

C. 

the community anchor.

D. 

the economic center.

E. 

the historic commerce district.

 

246.

Consumers often view central business district shopping as less convenient because of the lack of parking, higher crime rates, and 
 

A. 

outdated stores.

B. 

a lack of ambience.

C. 

fewer quality restaurants

D. 

few public restrooms

E. 

exposure to the weather

 

247.

Regional shopping center refers to a 
 

A. 

retail cluster in a downtown area.

B. 

retail location that typically has one primary store and about 20 to 40 smaller outlets, and serves a population base of about 100,000.

C. 

cluster of stores that serves people who are within a 5- to 10-minute drive and serves a population base of under 30,000.

D. 

group of 50 to 150 stores that typically attracts customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores.

E. 

retail cluster of stores in uptown areas.

 

248.

A group of 50 to 150 stores that typically attract customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores, is referred to as 
 

A. 

a power center.

B. 

a regional shopping center.

C. 

a strip mall.

D. 

a central business district.

E. 

an urban megacenter.

 

249.

Large shopping areas often contain two or three __________ stores, which are well-known national or regional stores such as Sears, Saks Fifth Avenue, and Bloomingdale's. 
 

A. 

power

B. 

mega

C. 

anchor

D. 

value

E. 

outlet

 

250.

Which of the following stores are most likely to be anchor stores at a regional shopping center? 
 

A. 

Old Navy, Abercrombie & Fitch, and Kay-Bee toy store

B. 

Hickory Farms, a locally owned jewelry store, and Radio Shack

C. 

an antique store, Dollar General, and a bakery

D. 

Sears, Macy's, and JCPenney

E. 

a Hallmark shop, a sporting goods consignment store, and a Barnes & Noble bookstore

 

251.

The West Edmonton Mall in Alberta, Canada, is a conglomerate of more than 800 stores, the world's largest indoor amusement park, more than 100 restaurants, a movie complex, and two hotels. This retail complex is the largest example of 
 

A. 

a regional shopping center.

B. 

an urban microcenter.

C. 

a megaplex.

D. 

a hypermarket.

E. 

a supercenter.

 

252.

A retail location that typically has one primary store (usually a department store branch) with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive is referred to as 
 

A. 

a power center.

B. 

a regional shopping center.

C. 

a community shopping center.

D. 

a central business district.

E. 

an urban megacenter.

 

253.

A community shopping center is a 
 

A. 

suburban mall containing up to 100 stores that draws customer from a 5- to 10-mile radius.

B. 

cluster of stores in a downtown area.

C. 

cluster of stores that serves people who are within a 5- to 10-minute drive.

D. 

collection of category killers usually located outside a major amusement park or attraction.

E. 

retail location that typically has one primary store (usually a department store branch) with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive.

 

254.

A cluster of neighborhood stores, whose composition is typically unplanned and serves people who are within a 5- to 10-minute drive is referred to as a 
 

A. 

suburban shopping mall.

B. 

strip mall.

C. 

mini-mart.

D. 

hypomarket.

E. 

central business district.

 

255.

A strip mall is a 
 

A. 

suburban mall containing up to 100 stores that draws customer from a 5- to 10-mile radius.

B. 

cluster of stores in a downtown area.

C. 

retail location that typically has one primary store (usually a department store branch) with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive.

D. 

cluster of neighborhood stores designed to serve people within a 5- to 10-minute drive.

E. 

collection of category killers usually located outside a major amusement park or attraction.

 

256.

Not every suburban store is located in a shopping mall. Many neighborhoods have clusters of stores, referred to as a strip mall, to serve people who are within a 5- to 10-minute drive. Unlike the larger shopping centers, the composition of these stores usually 
 

A. 

is unplanned.

B. 

includes national anchor stores.

C. 

is restricted to privately owned specialty stores.

D. 

is mainly fast-food restaurants.

E. 

includes amusement or theme parks.

 

257.

A huge shopping strip with multiple anchor (or national) stores is referred to as a 
 

A. 

central business district.

B. 

regional shopping center.

C. 

community shopping center.

D. 

strip mall.

E. 

power center.

 

258.

Large strip malls that often have two to five anchor stores, and often a supermarket that brings shoppers on a weekly basis, are referred to as 
 

A. 

suburban malls.

B. 

warehouse malls.

C. 

power centers.

D. 

retail malls.

E. 

cluster malls.

 

259.

Texas-based Whole Foods supermarkets target people who want to eat healthy. The stores use placards throughout, which tell shoppers about the farmers who grew and harvested the various products sold. This use of signage to provide consumer information is a part of which element of the retailing mix? 
 

A. 

communication

B. 

pricing

C. 

merchandise

D. 

goods and services factor

E. 

location

 

260.

Loblaws, a Canadian supermarket, features fruits and vegetables piled high on tables that have umbrellas. The idea behind this arrangement was to give Loblaws "a market feel." In terms of the retailing mix, this tactic is related to 
 

A. 

pricing.

B. 

goods and services factor.

C. 

communication.

D. 

merchandise.

E. 

location.

 

261.

In the late 1950s, Pierre Martineau described __________ as "the way in which the store is defined in the shopper's mind." 
 

A. 

size

B. 

location

C. 

product mix

D. 

image

E. 

anchor store

 

262.

Price ranges, store layouts, and breadth and depth of merchandise lines are considered to be the __________ of a store's image. 
 

A. 

functional qualities

B. 

sociological qualities

C. 

psychological attributes

D. 

lifestyle attributes

E. 

atmospheric elements

 

263.

Intangibles, such as a sense of belonging, excitement, style, or warmth, are considered to be __________ of a store's image. 
 

A. 

functional qualities

B. 

sociological qualities

C. 

psychological attributes

D. 

antecedent attributes

E. 

personality elements

 

264.

Impressions of the corporation that operates the store, the category or type of store, the product categories in the store, the brands in each category, merchandise and service quality, and the marketing activities of the store all contribute to the store's 
 

A. 

prices.

B. 

image.

C. 

emotive appeal.

D. 

name.

E. 

measurable attributes.

 

265.

Store layout, colors, lighting, and music are all considered part of a store's retail 
 

A. 

sensory management plan.

B. 

measurable attributes.

C. 

antecedent attributes.

D. 

emotive appeal.

E. 

atmosphere.

 

266.

The music played in the grocery store has a slow tempo to get shoppers to stay longer and hopefully put more items in their cart. Music is part of the grocery store's 
 

A. 

atmosphere.

B. 

sensory management plan.

C. 

psychological attributes.

D. 

personality type.

E. 

sociological profile.

 

267.

The use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store is referred to as 
 

A. 

functional qualities.

B. 

level of service.

C. 

shopper marketing.

D. 

lifestyle attributes.

E. 

psychographic elements.

 

268.

An approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category, is referred to as 
 

A. 

category capacity.

B. 

product management.

C. 

retail inventory category.

D. 

category management.

E. 

automated inventory control.

 

269.

Managing the breadth and depth of merchandise available from many manufacturers requires retail buyers who are 
 

A. 

efficient and effective managers.

B. 

familiar with the needs of the target market.

C. 

experienced shoppers.

D. 

familiar with retail inventory management.

E. 

product champions.

 

270.

The marketing metrics related to a retailer's customers include all of the following except 
 

A. 

the number of customers per day or per hour.

B. 

the average length of a store visit.

C. 

the turnover of inventory.

D. 

the average transaction size per customer.

E. 

the number of transactions per customer.

 

271.

The marketing metrics related to a retailer's products or merchandise include all of the following except 
 

A. 

the cost of carrying inventory.

B. 

the inventory turnover.

C. 

the average number of items per transaction.

D. 

the number of returns.

E. 

the average length of a store visit.

 

272.

The marketing metrics related to a retailer's finances include all of the following except 
 

A. 

the markdown percentage.

B. 

inventory carrying costs.

C. 

the return on sales.

D. 

the gross margin.

E. 

the sales per employee.

 

273.

A common financial indicator of how effectively retail space is used to generate revenue can be calculated by determining 
 

A. 

net sales.

B. 

shareholders' equity.

C. 

market share.

D. 

sales per square foot.

E. 

return on investment.

 

274.

An indicator of how effectively retail space is used to generate revenue is called 
 

A. 

sales per square foot.

B. 

return in investment.

C. 

percentage of markup.

D. 

gross profit.

E. 

same-store sales growth.

 

275.

Sales per square foot is calculated by dividing 
 

A. 

profit margin by selling area in square feet.

B. 

gross profit by selling area in square feet.

C. 

total sales by selling area in square feet.

D. 

return on investment by selling area in square feet.

E. 

net sales by selling area in square feet.

 

276.

Boston Pizza wants to determine how effective its retail space is compared to other pizza establishments in the local area. The calculation for this indicator is arrived at by determining the __________ for its store and comparing it against the same indicator for all of the other local pizza outlets. 
 

A. 

same-store gross margin

B. 

same-store sales growth

C. 

sales per square foot

D. 

net profit

E. 

same-store net present value

 

277.

A financial indicator used to compare the increase in sales of stores that have been open for the same period of time is referred to as 
 

A. 

return in investment.

B. 

percentage of markup.

C. 

gross profit.

D. 

sales per square foot.

E. 

same-store sales growth.

 

278.

An indicator used to compare the increase in sales of stores that have been open for the same period of time is called 
 

A. 

market share of each store.

B. 

same-store sales growth.

C. 

sales per square foot of each store.

D. 

gross sales per store.

E. 

net profit per store.

 

279.

The calculation for same-store sales growth is 
 

A. 

Total sales ÷ Selling area in square feet.

B. 

(Store sales in year 3 ÷ Store sales in year 1).

C. 

Store sales in year 1 ÷ (Store sales in year 2 - Store sales in year 1).

D. 

(Store sales in year 2 - Store sales in year 1) ÷ Store sales in year 1.

E. 

Store 1 square feet ÷ Store 2 square feet.

 

280.

The description of how new forms of retail outlets enter the market is referred to as the 
 

A. 

retail life cycle.

B. 

product life cycle.

C. 

wheel of retailing.

D. 

retail life matrix.

E. 

retail continuum.

 

281.

The wheel of retailing refers to 
 

A. 

the life cycle of most consumer products sold by retailers.

B. 

the diffusion of types of retailers for a new product.

C. 

the progression of retail locations an outlet goes through.

D. 

the description of how new forms of retail outlets enter the market.

E. 

the description of retail management philosophies.

 

282.

Many fast-food retailers, including McDonald's and Burger King, have followed a predictable pattern of how new forms of retail outlets enter the marketplace. McDonald's has evolved from a relatively simple restaurant with low margins, low prices, limited product offerings, and low institutional status to a worldwide chain with higher margins, high status, and a diverse menu of products. This evolution of McDonald's restaurants is consistent with the 
 

A. 

slow to fast-food restaurant evolutionary cycle.

B. 

revolution of retailing.

C. 

retail life cycle.

D. 

fast-food retail sequence.

E. 

wheel of retailing.

 

283.

Retail outlets, like products, experience the process of growth and decline, which is referred to as the 
 

A. 

retail life cycle.

B. 

wheel of retailing.

C. 

product life cycle.

D. 

retail continuum.

E. 

retail life matrix.

 

284.

Retail life cycle refers to 
 

A. 

the distinct stages a product goes through before it becomes obsolete.

B. 

the process of growth and decline that retail outlets, like products, experience.

C. 

the cycle of a customer's buying behavior from awareness of a product to its ultimate purchase.

D. 

the relationship between the tangible aspects of a product and the types of services that need to accompany it.

E. 

the traditional management changes that take place as a retail outlet grows.

 

285.

The four stages of the retail life cycle are 
 

A. 

introduction, growth, maturity, and decline.

B. 

awareness, inquiry, alternative evaluation, and purchase.

C. 

early growth, accelerated development, maturity, and decline.

D. 

innovation, standardization, adaptation, and obsolescence.

E. 

innovation, adaptation, imitation, and obsolescence.

 

286.

In the retail life cycle, __________ is the stage of emergence of a retail outlet, with a sharp departure from existing competition. 
 

A. 

decline

B. 

maturity

C. 

introduction

D. 

early growth

E. 

accelerated development

 

287.

According to the retail life cycle, in which stage would market share rise gradually, although profits may be low because of start-up costs? 
 

A. 

decline

B. 

maturity

C. 

introduction

D. 

accelerated development

E. 

early growth

 

288.

Which type of outlet is most likely in its early growth stage of the retail life cycle? 
 

A. 

single-price stores

B. 

online retailers

C. 

supermarkets

D. 

general stores

 

289.

Both market share and profit achieve their greatest growth rates during which stage of the retail life cycle? 
 

A. 

decline

B. 

maturity

C. 

introduction

D. 

early growth

E. 

accelerated development

 

290.

During which stage of the retail life cycle do companies establish multiple outlets? 
 

A. 

decline

B. 

maturity

C. 

accelerated development

D. 

introduction

E. 

early growth

 

291.

The key goal for retailers in the accelerated development phase of the retail life cycle is to 
 

A. 

recover start-up costs.

B. 

establish a dominant position in the fight for market share.

C. 

delay entering the decline stage of the retail life cycle.

D. 

find ways of discouraging customers from moving to low-margin, mass-volume outlets.

E. 

establish a retail concept that is a sharp departure from existing competition.

 

292.

Accelerated development in the retail life cycle is similar to which stage in the product life cycle? 
 

A. 

introduction

B. 

maturity

C. 

decline

D. 

growth

E. 

harvest

 

293.

Which type of outlet is most likely in its accelerated development stage of the retail life cycle? 
 

A. 

single-price stores

B. 

online retailers

C. 

supermarkets

D. 

business-district retailers

E. 

convenience stores

 

294.

The battle for market share is usually fought directly before the __________ stage, and some competitors drop out of the market. 
 

A. 

decline

B. 

growth

C. 

maturity

D. 

harvest

E. 

introduction phase

 

295.

Discounting generally takes place during which stage of the retail life cycle? 
 

A. 

early growth

B. 

accelerated development

C. 

decline

D. 

maturity

E. 

early growth and maturity

 

296.

Which type of outlet is most likely in its maturity stage of the retail life cycle? 
 

A. 

single-price stores

B. 

value retail centers

C. 

online retailers

D. 

business-district retailers

E. 

convenience stores

 

297.

Which type of outlet is most likely in its decline stage of the retail life cycle? 
 

A. 

single-price stores

B. 

value retail centers

C. 

online retailers

D. 

general stores

E. 

convenience stores

 

298.

__________ retailers utilize and integrate a combination of traditional store formats and nonstore formats. 
 

A. 

Progressive

B. 

Opportunistic

C. 

Multichannel

D. 

Cluster

E. 

Power

 

299.

Multichannel retailers are retailers that 
 

A. 

sell different products through entirely different channels.

B. 

sell through different channels under different brand names.

C. 

utilize strategic and tactical wholesalers.

D. 

utilize and integrate a combination of traditional store formats and nonstore formats.

E. 

combine two channels for their offerings: one for products and the other for services.

 

300.

Retailers that utilize and integrate a combination of traditional store formats and nonstore formats are referred to as 
 

A. 

multichannel retailers.

B. 

scrambled merchandisers.

C. 

mixed-brand retailers.

D. 

dual distribution retailers.

E. 

mixed-channel retailers.

 

301.

Retailers such as Williams-Sonoma that sell products through retail stores, catalogs, and online are examples of 
 

A. 

intertype competitors.

B. 

multichannel retailers.

C. 

vertically integrated retailers.

D. 

scrambled merchandisers.

E. 

dual distributors.

 

302.

__________ exists if multiple retail channels become complementary through a series of touch points with consumers. 
 

A. 

Multiretail marketing

B. 

Shopper marketing

C. 

Omnichannel retailing

D. 

Retail positioning

E. 

The wheel of retailing

 

303.

In the context of omnichannel retailing, all of the following are potential consumer touch points for a retailer except 
 

A. 

picking up the product from the nearest store.

B. 

providing feedback on the retailer's Facebook page.

C. 

placing an order online.

D. 

using displays, coupons, product samples, and other brand communications to influence shopping behavior.

E. 

using a mobile app to scan a QR code from a catalog.

 

304.

The complementary role of different communication and delivery channels is referred to as 
 

A. 

the cumulative effect.

B. 

the primary effect.

C. 

the cross-over effect.

D. 

the complementary effect.

E. 

the influence effect.

 

305.

Retailers that integrate and leverage their stores, catalogs, and websites have seen 
 

A. 

a sizable increase in yearly sales from individual customers.

B. 

a small increase in yearly sales from aggregate target market segments.

C. 

no difference in yearly sales from individual customers.

D. 

a decrease in yearly sales from individual customers.

E. 

a large decrease in yearly sales from individual customers.

 

306.

Independently owned firms that take title to the merchandise they handle are referred to as 
 

A. 

brokers.

B. 

agencies.

C. 

virtual retailers.

D. 

merchant wholesalers.

E. 

merchant retailers.

 

307.

Merchant wholesalers are independently owned firms that __________ the merchandise they handle. 
 

A. 

take title to

B. 

broker

C. 

act as agents for

D. 

break bulk and repackage

E. 

do not deliver

 

308.

Which of the following is a type of full-service merchant wholesaler? 
 

A. 

cash and carry wholesaler

B. 

rack jobbers

C. 

truck jobbers

D. 

specialty merchandise wholesaler

E. 

drop shippers

 

309.

Wholesalers that carry a broad assortment of merchandise and perform all channel functions are referred to as a 
 

A. 

limited-line wholesaler.

B. 

drop shipper.

C. 

rack jobber.

D. 

specialty merchandise wholesaler.

E. 

general merchandise wholesaler.

 

310.

Which type of wholesaler carries a broad assortment of merchandise and performs all channel functions? 
 

A. 

drop shipper

B. 

general merchandise wholesaler

C. 

limited-line wholesaler

D. 

specialty merchandise wholesaler

E. 

rack jobber

 

311.

General merchandise wholesalers 
 

A. 

carry a broad assortment of merchandise and perform all channel functions.

B. 

own the merchandise they sell but do not physically handle, stock, or deliver it.

C. 

have a small warehouse from which they stock their trucks for distribution to retailers.

D. 

work for several producers, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries.

E. 

deal exclusively with small low-cost consumer products that are distributed to a select number of large retail chains.

 

312.

The wholesalers most prevalent in the hardware, drug, and clothing industries are 
 

A. 

specialty wholesalers.

B. 

full-line wholesalers.

C. 

cash and carry wholesalers.

D. 

limited-line wholesalers.

E. 

universal wholesalers.

 

313.

A wholesaler that carries a narrow range of products and performs all channel functions is referred to as a 
 

A. 

general merchandise wholesaler.

B. 

truck jobber.

C. 

specialty merchandise wholesaler.

D. 

rack jobber.

E. 

drop shipper.

 

314.

Specialty merchandise wholesalers 
 

A. 

carry a broad assortment of merchandise and perform all channel functions.

B. 

own the merchandise they sell but do not physically handle, stock, or deliver it.

C. 

offer a relatively narrow range of products but have an extensive assortment within the product lines carried.

D. 

work for several producers, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries.

E. 

deal exclusively with small low-cost consumer goods that are distributed to a select number of large retail chains.

 

315.

Which type of wholesaler offers a relatively narrow range of products but has an extensive assortment within the product lines carried? 
 

A. 

general merchandise wholesaler

B. 

limited-service wholesaler

C. 

cash and carry wholesaler

D. 

specialty merchandise wholesaler

E. 

drop shipper

 

316.

The wholesalers that perform all channel functions and are found in the health foods, automotive parts, and seafood industries would be 
 

A. 

specialty wholesalers.

B. 

full-line wholesalers.

C. 

limited wholesalers.

D. 

universal wholesalers.

E. 

cash and carry wholesalers.

 

317.

Which of the following is a type of full-service merchant wholesaler? 
 

A. 

cash and carry wholesaler

B. 

rack jobbers

C. 

truck jobbers

D. 

specialty merchandise wholesaler

E. 

drop shippers

 

318.

The four major types of limited-service merchant wholesalers are cash and carry wholesalers, drop shippers, truck jobbers, and 
 

A. 

display vendors.

B. 

rack jobbers.

C. 

point-of-purchase wholesalers.

D. 

transport vendors.

E. 

container transport vendors.

 

319.

The four major types of limited-service merchant wholesalers are drop shippers, rack jobbers, truck jobbers, and 
 

A. 

machine vendors.

B. 

credit line wholesalers.

C. 

transport vendors.

D. 

cash and carry wholesalers.

E. 

container transport vendors.

 

320.

The four major types of limited-service merchant wholesalers are rack jobbers, cash and carry wholesalers, truck jobbers, and 
 

A. 

machine vendors.

B. 

credit line wholesalers.

C. 

drop shippers.

D. 

transport vendors.

E. 

container transport vendors.

 

321.

The four major types of limited-service merchant wholesalers are rack jobbers, cash and carry wholesalers, truck jobbers, and 
 

A. 

machine vendors.

B. 

credit line wholesalers.

C. 

transport vendors.

D. 

container transport vendors.

E. 

desk jobbers.

 

322.

The four major types of limited-service merchant wholesalers are drop shippers, rack jobbers, cash and carry wholesalers, and 
 

A. 

truck jobbers.

B. 

machine vendors.

C. 

credit line wholesalers.

D. 

transport vendors.

E. 

container transport vendors.

 

323.

Rack jobbers are wholesalers that 
 

A. 

furnish the shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.

B. 

own the merchandise they sell and have retailers store it in their warehouses.

C. 

own the merchandise they sell but do not physically handle, stock, or deliver it.

D. 

have a small warehouse from which they stock their trucks for distribution to retailers.

E. 

work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.

 

324.

A limited-service wholesaler that furnishes shelves that display merchandise in stores, performs all channel functions, and sells on consignment to retailers is referred to as a 
 

A. 

stack loader.

B. 

rack jobber.

C. 

drop shipper.

D. 

desk jobber.

E. 

truck jobber.

 

325.

Selling on consignment to retailers, which means they retain the title to the products displayed and bill retailers only for the merchandise sold, is characteristic of which limited-service wholesaler? 
 

A. 

truck jobbers

B. 

transport vendors

C. 

rack jobbers

D. 

cash and carry wholesalers

E. 

drop shippers

 

326.

A limited-service wholesaler that performs all channel functions and sells on consignment to retailers, which means it retains the title to the products displayed and bills retailers only for the merchandise sold, is a 
 

A. 

truck jobber.

B. 

transport vendor.

C. 

rack jobber.

D. 

cash and carry wholesaler.

E. 

drop shipper.

 

327.

Which type of wholesaler traditionally sells hosiery, toys, and health and beauty items? 
 

A. 

cash and carry wholesalers

B. 

truck jobbers

C. 

general merchandise wholesalers

D. 

rack jobbers

E. 

drop shippers

 

328.

A store chain is looking for a wholesaler to furnish its health and beauty display shelves, perform all channel functions, and sell to it on consignment. Which of the following would be the wisest wholesaler choice for its requirements? 
 

A. 

a rack jobber

B. 

a truck jobber

C. 

a cash and carry wholesaler

D. 

a desk jobber

E. 

a drop shipper

 

329.

Cash and carry wholesalers 
 

A. 

furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.

B. 

take title to merchandise but sell only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for merchandise.

C. 

own the merchandise they sell but do not physically handle, stock, or deliver it.

D. 

have a small warehouse from which they stock their trucks for distribution to retailers.

E. 

work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.

 

330.

Wholesalers that take title to merchandise but sell only to buyers that call on them, pay for and move/take away the merchandise themselves are referred to as 
 

A. 

rack jobbers.

B. 

truck jobbers.

C. 

transport vendors.

D. 

cash and carry wholesalers.

E. 

drop shippers.

 

331.

Cash and carry wholesalers 
 

A. 

handle bulky items such as lumber, bricks, and telephone poles.

B. 

handle perishable items such as flowers, baked goods, and deli meats.

C. 

handle office supplies, electrical supplies, hardware products, and groceries.

D. 

are a kind of full-service wholesaler.

E. 

lease vending machines to merchants and refill them as needed on a cash only basis.

 

332.

Drop shippers 
 

A. 

own the merchandise they sell but do not physically handle, stock, or deliver it.

B. 

perform all channel functions and sell on consignment to retailers.

C. 

take title to merchandise but sell only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for merchandise.

D. 

have a small warehouse from which they stock their trucks for distribution to retailers.

E. 

work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.

 

333.

Another name for a drop shipper is a 
 

A. 

drop runner.

B. 

desk jobber.

C. 

transport vendor.

D. 

container transport vendor.

E. 

stock jobber.

 

334.

Wholesalers that own the merchandise they sell but do not physically handle, stock, or deliver it are referred to as 
 

A. 

cash and carry wholesalers.

B. 

rack jobbers.

C. 

truck jobbers.

D. 

manufacturer's representatives.

E. 

drop shippers.

 

335.

Wholesalers that simply solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer are referred to as 
 

A. 

cash and carry wholesalers.

B. 

rack jobbers.

C. 

drop shippers.

D. 

truck jobbers.

E. 

manufacturer's representatives.

 

336.

Coal, lumber, and chemicals, which are sold in extremely large quantities, are traditionally sold by which type of wholesaler? 
 

A. 

cash and carry wholesalers

B. 

rack jobbers

C. 

truck jobbers

D. 

general merchandise wholesalers

E. 

drop shippers

 

337.

Which of the following firms has made the wisest wholesaler choice for its product? 
 

A. 

Sam's Coal Country uses a drop shipper for its coal.

B. 

Amy's Amazing Appetizers uses a rack jobber for its frozen apricot aperitifs.

C. 

Hannah's Hardware uses a rack jobber for its hinges.

D. 

Shayna's Superior Supplies uses a desk jobber for its staplers.

E. 

Nova's Novelties uses a truck jobber for its never-needs-a-battery night lights.

 

338.

The term truck jobbers refers to wholesalers that 
 

A. 

furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.

B. 

store all the merchandise they sell in their trucks.

C. 

own the merchandise they sell but do not physically handle, stock, or deliver it.

D. 

have a small warehouse from which they stock their trucks for distribution to retailers.

E. 

work for several producers, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries.

 

339.

Wholesalers that have a small warehouse from which they stock their trucks for distribution to retailers are referred to as 
 

A. 

cash and carry wholesalers.

B. 

truck jobbers.

C. 

rack jobbers.

D. 

drop shippers.

E. 

manufacturer's representatives.

 

340.

Wholesalers that handle a limited assortment of fast-moving or perishable items that are sold for cash directly from trucks in their original packages are referred to as 
 

A. 

rack jobbers.

B. 

drop shippers.

C. 

truck jobbers.

D. 

cash and carry wholesalers.

E. 

manufacturer's representatives.

 

341.

Bakery items, dairy products, and meat that are sold for cash in their original packages are traditionally sold by which type of wholesaler? 
 

A. 

rack jobbers

B. 

drop shippers

C. 

cash and carry wholesalers

D. 

truck jobbers

E. 

general merchandise wholesalers

 

342.

A __________ most likely would use truck jobbers to distribute its products. 
 

A. 

clothing manufacturer

B. 

manufacturer of electric generators

C. 

leather goods importer

D. 

pharmaceutical company

E. 

meat processing plant

 

343.

Which of the following firms has made the wisest wholesaler choice for its product? 
 

A. 

Hannah's Hardware uses a rack jobber for its hammers.

B. 

Fiona's Floral uses a truck jobber for its cut roses.

C. 

Sam's Coal Country uses a truck jobber for its subway cars.

D. 

Shayna's Superior Supplies uses a desk jobber for its staplers.

E. 

Josh's Jackhammers uses a rack jobber for its hard hats.

 

344.

Which of the following statements best describes the key difference between merchant wholesalers and agents and brokers? 
 

A. 

Merchant wholesalers don't perform all channel functions, whereas agents and brokers do.

B. 

Agents and brokers only deal with consumer channels.

C. 

Agents and brokers make their profits based on the sales of merchandise they own, while merchant wholesalers make profits based on fees paid for their services.

D. 

Merchant wholesalers take title to merchandise, whereas agents and brokers do not.

E. 

Agents and brokers take title to merchandise, whereas merchant wholesalers do not.

 

345.

Manufacturers' agent refers to agents who 
 

A. 

represent a single producer and carry all products in the producer's lines.

B. 

work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.

C. 

take title to merchandise but sell only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for merchandise.

D. 

own the merchandise they sell but do not physically handle, stock, or deliver it.

E. 

furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.

 

346.

Intermediaries that work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory are referred to as 
 

A. 

selling agents.

B. 

line brokers.

C. 

distribution brokers.

D. 

manufacturers' agents.

E. 

brokers.

 

347.

Another name for a manufacturer's agent is a 
 

A. 

manufacturer's desk jobber.

B. 

manufacturer's transport vendor.

C. 

manufacturer's representative.

D. 

manufacturer's broker.

E. 

manufacturer's rack jobber.

 

348.

A grocery manufacturer that is seeking an agent that would act on its behalf on a permanent basis and receive a commission should use a 
 

A. 

food broker.

B. 

grocery broker.

C. 

selling agent.

D. 

dual distribution system.

E. 

rack jobber.

 

349.

Selling agents are agents that 
 

A. 

furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.

B. 

represent a single producer and are responsible for the entire marketing function of that producer.

C. 

work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.

D. 

take title to merchandise but sell only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for the merchandise.

E. 

sell primarily large bulky products.

 

350.

Intermediaries that represent a single producer and are responsible for the entire marketing function of that producer are referred to as 
 

A. 

brokers.

B. 

line brokers.

C. 

selling agents.

D. 

distribution brokers.

E. 

manufacturers' agents.

 

351.

Intermediaries that represent a single producer and are responsible for designing promotional plans, setting prices, determining distribution policies, and making recommendations on product strategy are referred to as 
 

A. 

brokers.

B. 

line brokers.

C. 

distribution brokers.

D. 

selling agents.

E. 

manufacturer's agents.

 

352.

Carla's Cards uses a __________ to sell and market the entire line of greeting cards. It designs promotional plans, sets prices, determines distribution policies, and makes recommendations to Carla on product strategy. 
 

A. 

manufacturer's agent

B. 

broker

C. 

manufacturer's branch office

D. 

manufacturer's sales office

E. 

selling agent

 

353.

Brokers are independent firms or individuals who 
 

A. 

represent a single producer and are responsible for the entire marketing function of that producer.

B. 

work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.

C. 

take title to merchandise but sell only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for the merchandise.

D. 

own the merchandise they sell but do not physically handle, stock, or deliver it.

E. 

bring buyers and sellers together to make sales.

 

354.

Independent firms or individuals whose principal function is to bring buyers and sellers together to make sales are referred to as 
 

A. 

manufacturers' agents.

B. 

brokers.

C. 

selling agents.

D. 

manufacturer's branches.

E. 

manufacturer's sales offices.

 

355.

Originally, filters for Mr. Coffee electric-drip coffeemakers were sold through appliance and mass merchandise stores. If the company decided to sell the filters in grocery stores where customers purchased their coffee, what type of intermediaries would the company most likely hire? 
 

A. 

a full-line wholesaler

B. 

a drop shipper

C. 

a food broker

D. 

a truck jobber

E. 

a manufacturer's representative

 

356.

A unique broker that acts in many ways like a manufacturer's agent is a food broker, representing buyers and sellers in the grocery industry. Food brokers differ from conventional brokers because they act on behalf of producers on a permanent basis and 
 

A. 

receive a commission for their services.

B. 

are paid a flat fee for each time the shelves are stocked.

C. 

are paid by both the buyer and seller separately depending upon the size of the order.

D. 

are paid a commission by the buyer and a bonus by the seller.

E. 

are paid a flat fee by both the buyer and seller, but receive a bonus based upon the percentage of increased sales by quarter.

 

357.

Freightfinder.com is an Internet company that is called a "go-between." If a trucker needs to find a load for a particular trade lane, he or she can visit this site, list the price and available truck space, and find a company that needs a shipment moved. Since the purpose of this website is to put buyer and sellers together so that a single sale can be made, this website can be categorized as 
 

A. 

a selling agent.

B. 

a manufacturer's representative.

C. 

a manufacturer's agent.

D. 

a broker.

E. 

an administrator.

 

358.

A business in Kansas City, Missouri, looking to rent office space should use __________ to help it locate the most suitable space at the best possible rate. 
 

A. 

a selling agent

B. 

a manufacturer's representative

C. 

a manufacturer's agent

D. 

an administrator

E. 

a broker

 

359.

Wholly owned extensions of the producer that perform wholesaling activities are referred to as 
 

A. 

general merchandise wholesalers.

B. 

cash and carry wholesalers.

C. 

agents and brokers.

D. 

manufacturer's branch or sales offices.

E. 

merchant wholesalers.

 

360.

Unlike merchant wholesalers, agents, and brokers, manufacturers' branches and sales offices are __________ that perform wholesaling activities. 
 

A. 

independent distribution managers

B. 

independent intermediary channels

C. 

wholly owned extensions of the producer

D. 

wholly owned extensions of the distributor

E. 

wholly owned extensions of the retailer

 

361.

A manufacturer's branch office 
 

A. 

carries a producer's inventory and performs the functions of a full-service wholesaler.

B. 

performs a sales function as an option to agents and brokers.

C. 

works for several producers and carries noncompetitive, complementary merchandise in an exclusive territory.

D. 

takes title to merchandise but sells only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for the merchandise.

E. 

brings buyers and sellers together to make sales.

 

362.

A manufacturer's sales office 
 

A. 

works for several producers and carries noncompetitive, complementary merchandise in an exclusive territory.

B. 

takes title to merchandise but sells only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for the merchandise.

C. 

carries a producer's inventory, performs the functions of a full-service wholesaler, and is an alternative to a merchant wholesaler.

D. 

does not carry inventory, typically performs a sales function, and is an alternative to agents and brokers.

E. 

brings buyers and sellers together to make sales.

 

363.

A wholly owned extension of the producer that does not carry inventory, typically performs only a sales function, and is an alternative to agents and brokers is referred to as a 
 

A. 

brokering agent.

B. 

cash and carry wholesaler.

C. 

manufacturer's sales office.

D. 

manufacturer's branch office.

E. 

merchant wholesaler.

 

364.

Similar to the West Edmonton Mall in Alberta, Canada, with shopping, restaurants, hotels, and a theme park, the Mall of America is a variation of  
 

A. 

a central business district.

B. 

a diverse shopping center.

C. 

community shopping center.

D. 

a destination mall concept.

E. 

an anchored mall.

 

365.

Key targets for Mall of America are  
 

A. 

the interstate market and discount shoppers.

B. 

shoppers who seek mainstream experiences.

C. 

large numbers of similar retailers to maintain a consistent retail profile.

D. 

budget-conscious travelers and time-poor shoppers.

E. 

the local market and tourists.

 

366.

To continue to be successful, Mall of America must  
 

A. 

focus mostly on attracting suitable employees.

B. 

keep a huge and diverse portfolio of retailers and attractions in the mall.

C. 

refine and focus the retail mix to create a more consistent purchasing experience.

D. 

promote its location as a key feature.

E. 

reduce the variety of retailers to contain the costs of appealing to a wide range of customers.

 

 


Short Answer Questions
 

367.

Name the four utilities offered by retailers and identify a retailer that provides that utility. 
 


 


 


 

 

368.

What is the value of retailing for consumers and the economy? 
 


 


 


 

 

369.

Explain the global impact of retailing. 
 


 


 


 

 

370.

Briefly describe the three ways retail outlets can be classified. 
 


 


 


 

 

371.

Briefly describe the advantages of being an independent retailer and the benefits an independent retailer can offer customers. 
 


 


 


 

 

372.

Explain the relationship between a franchisee and a franchisor. 
 


 


 


 

 

373.

Briefly describe the two general types of franchises. 
 


 


 


 

 

374.

Briefly describe the three levels of service offered by retail outlets. 
 


 


 


 

 

375.

Explain the difference between breadth of line and depth of line. Be sure to include the definition of scrambled merchandising in your explanation. 
 


 


 


 

 

376.

Explain the difference between a hypermarket and a supercenter. 
 


 


 


 

 

377.

Why are vending machine prices often higher than those in a retail store? 
 


 


 


 

 

378.

Explain why direct mail and catalogs are an attractive form of retailing. 
 


 


 


 

 

379.

Explain the dimensions of the retail positioning matrix, and give an example of a store that would be located in each quadrant of the matrix. 
 


 


 


 

 

380.

What is the retailing mix? 
 


 


 


 

 

381.

Explain the difference between a markup, an original markup, and a maintained markup. 
 


 


 


 

 

382.

Explain what a markdown is and its timing (i.e., when a retailer uses it). 
 


 


 


 

 

383.

What is off-price retailing? Identify and give an example of the three variations of off-price retailing. 
 


 


 


 

 

384.

List the five store locations or settings. How has the location of stores changed over the years? 
 


 


 


 

 

385.

What is category management and when is it used? 
 


 


 


 

 

386.

Explain how the wheel of retailing works. 
 


 


 


 

 

387.

Describe the retail life cycle. 
 


 


 


 

 

388.

What future changes may be expected in retailing? 
 


 


 


 

 

389.

Explain the difference between full-service and limited-service merchant wholesalers. List and describe the types of wholesalers that belong in each category. 
 


 


 


 

 

390.

Identify and describe the functions of agents and brokers. 
 


 


 


 

 

Document Information

Document Type:
DOCX
Chapter Number:
16
Created Date:
Aug 21, 2025
Chapter Name:
Chapter 16 Retailing And Wholesaling
Author:
Roger A. Kerin, Steven W. Hartley

Connected Book

Answer Key + Test Bank | Marketing 13th Edition by Kerin and Hartley

By Roger A. Kerin, Steven W. Hartley

Test Bank General
View Product →

$24.99

100% satisfaction guarantee

Buy Full Test Bank

Benefits

Immediately available after payment
Answers are available after payment
ZIP file includes all related files
Files are in Word format (DOCX)
Check the description to see the contents of each ZIP file
We do not share your information with any third party